As an investor in Evanston, you’re most likely on the hunt for your next bargain rental property. However, there are times when the property you want is not listed at a good price, or even at fair market value. An overpriced property, though, isn’t automatically an impossibility. There are ways to still get that bargain! Even though the property is overpriced, you can still manage to pull off a successful offer if you have a few strategies in mind.
Check the Fair Market Value
Do you think that the property you want is a bit overpriced? The best thing for you to do is to do a comparative market analysis on it. To determine a property’s fair market value, it is best to locate comparable properties recently sold in the area. Do not overlook a key detail: how long the property has been listed. Check the market for recent sales. If your property is listed higher than them, or if it’s been listed in the market for a long time, it’s overpriced.
Talk to the Seller
It would be wise to contact the seller of the overpriced property. There are many different reasons why a listed property may be overpriced, from simply not understanding how to value their home to hiring an inexperienced or greedy seller’s agent. Money might not be the only thing that’s motivating the seller, too. You can simply ask the seller why they put up their home on the listing. Don’t be afraid to find out why they’re wanting to sell. Perhaps the priority isn’t to get a high sales price, but to let go of the property as soon as possible. If so, this can lead to a negotiation of the price in a downwards fashion.
Make an Appealing Offer
When bidding on an overpriced home, provide the seller a good reason to contemplate saying yes to a lowball offer. One strategy you can use is to offer incentives or to draft terms that are alluring for any seller. You could include things like a flexible closing date and your mortgage pre-approval letter. Even an earnest money deposit or fewer contingencies would do the trick! By doing this, you’re increasing the chance of making your offer stand out in a pool of offers.
Hire an Experienced Buyer’s Agent
To significantly increase your chances of negotiating a seller down on an overpriced property, hire an experienced real estate agent. This person will serve as a guide when you negotiate with the seller. It’s quite common for sellers of overpriced homes to overlook the first offer that they get, even if the offer is quite good. An experienced agent will guide you through the negotiation process so that, to some extent, both parties get what they want. Your real estate agent will be able to guide you, especially when it’s time to walk away from the deal. Some sellers won’t budge on their desired price, even if it’s far too high. If all has been said and done, and you still don’t get to the terms that you want even with your real estate agent’s help, it might be time to walk away.
These strategies will inform your decisions for the next offer you make on your next best rental house. Still, completing multiple comparative market analyses, negotiating with sellers, and maintaining your Evanston rental properties all at the same time can become time-consuming. Why not let us do all of that work for you? At Real Property Management Chicago Edge, 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 773-904-7700.
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