Today's real estate market is on fire as buyers come out of the woodwork looking for great deals. Incentives like lower mortgage rates and limited inventory make the home buying experience exciting. After looking at several houses you are ready to make an offer, but you believe the seller has overpriced his property. How do you make an offer on an overpriced house?
Here are 7 Keys to dealing with overpriced houses.
1. Determine if the house is truly overpriced for the current market by running comparable with similar houses in the area that recently sold. With the assistance of your real estate agent, stay on top of the local property values in the neighborhood you want to live.
2. Determine how long the house has been on the market. Is housing in your desired neighborhood being sold within 30 days of being listed? How long has the house you are interested in been on the market? If over the 30 day thresh hold then pricing may be an issue.
3. Provide support for your lower offer in the form of a CMA (Comparative Market Analysis) of the recent sales in the neighborhood for similar houses. Your real estate agent can provide this documentation in support of your lower offer.
4. Determining what the seller's motivation is for selling at this time may lead to the reason why the property is overpriced. Is the seller fishing for an inexperienced buyer? Is there a deadline the seller is trying to meet?
5. Make your offer stand out by attaching a hefty deposit, agreeing to a flexible closing date, or attaching a pre-approval letter.
6. Be ready to negotiate with the seller to reach a mutually agreeable sales price. Keep in mind your financial limits and what your highest and best offer will be.
7. Be ready to walk away. As hard as it may seem and even though you have done your due diligence sometimes there is just no room for agreement. So, resolve that if the seller is unmovable, simply walk away and look for another house.
Utilizing these 7 Keys may not always result in a win for you, but it will demonstrate to sellers that you are knowledgeable and in touch with the current local real estate market.
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