As an investor in Ridgewood, you are undoubtedly always having to look for the next great bargain rental property. The property you want might not always be listed at a great price, or even at its fair market value. If you have your heart set on a home that appears to be overpriced, this does not necessarily mean that it is out of reach. Although making an offer on an overpriced property will likely be difficult, it is still possible to do so using a few effective strategies.
Determine the Fair Market Value
A comparative market analysis is one of the best places to start if you believe that a property you are interested in is overpriced. Find comparable nearby properties that have recently sold in order to estimate a property’s fair market value. A good idea is to find out how long the property has been on the market. The property is likely overpriced if it is priced higher than comparable recent sales or has been on the market for a long time.
Create a folder or file for all the research-related information you collect. If you make an offer on a property, supporting documentation for your valuation could be useful.
Talk to the Seller
If possible, you should also speak with the seller before submitting a bid on an overpriced home. A listed property may be overpriced for a variety of reasons, from the seller simply not knowing how to value their home to use an unqualified or opportunistic seller’s agent. The seller might not only be motivated by monetary gain, as well. You might be able to determine the seller’s motivation for listing their house for sale if you make a few specific inquiries. It may be possible for you to negotiate a lower price if the seller is pressed for time or has needs other than a high sales price.
Make an Appealing Offer
When bidding on a pricey home, you must provide strong reasons for the seller to think about your lowball offer. Offering incentives or attractive terms is one strategy you can employ to make your request stand out. You may also include a flexible closing date along with your letter of mortgage preapproval. To sweeten the deal, you could also provide a sizable earnest money deposit or fewer contingencies.
Consider writing a letter outlining your plans for the property’s future or your proposed maintenance schedule if the seller isn’t financially motivated. Sometimes hesitant sellers have an emotional attachment to their homes, and they may be more likely to sell if they believe a Ridgewood property manager will take good care of it. It may be easier for them to let go if they can envision a nice family or young professional living there. If your offer is one of several, these characteristics may help yours stand out.
Hire an Experienced Buyer’s Agent
To significantly improve your odds of negotiating a price reduction with an overpriced seller, you must employ an experienced real estate agent. You’ll need a mediator to assist you in your discussions with the seller and to advise you when it’s time to back out. Even if you’ve done your best to make your offer appealing, sellers of overpriced homes are unlikely to accept the first one you submit. Having an experienced agent with you will help you be better equipped to negotiate back and forth multiple times without wasting your entire day.
Additionally, if you decide to back out of the deal, your real estate agent will be able to support your choice. Some sellers won’t change their price, even if it’s much too high. If despite your best efforts and the assistance of your real estate agent, you are still unsuccessful, it is likely time to move on.
You can approach any property you believe would make a wonderful rental home with more assurance if you use techniques like these. Even so, it can take a lot of time to manage all of your Ridgewood rental properties at once, negotiate with sellers, and complete numerous comparative market analyses. Why not employ someone to carry out those duties for you? At Real Property Management Concierge, we offer our rental home investors professional market analyses on prospective properties and comprehensive rental home management. To learn more about what we have to offer, contact us today or give us a call at 201-514-1603.
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