As a real estate investor in Albuquerque, you’re likely looking for the next budget-friendly rental property. But occasionally, the property you desire may not be listed at a bargain price, or even at fair market value. It doesn’t automatically follow that a property you have your eye on—even one that seems to be overpriced—is unaffordable. Even though it will probably be difficult to make an offer on a property that is overpriced, it is still possible to do so by employing a few smart strategies.
Determine the Fair Market Value
Doing a comparative market analysis is one of the best places to start if you believe that a property is overpriced. To determine a property’s fair market value, it is advisable to find recently sold comparable properties in the area. Checking how long the property has been listed is another smart move. It’s safe to say that a property is overpriced when it has been on the market for a while or is listed higher than comparable recent sales.
As you conduct your research, compile all the data you discover into a folder or file. If you submit an offer, you may want to have supporting documentation for your estimation of the value of the property.
Talk to the Seller
Talking to the seller if you can is another step in placing a bid on an overpriced property. There are many factors that can contribute to an overpriced listing, from the seller simply not knowing how to value their home to using an unqualified or opportunistic seller’s agent. Additionally, the seller may be motivated by factors other than monetary gain. If you ask the seller a few specific questions, you may be able to figure out why they are selling and how motivated they are. If the seller is in a rush or has other priorities besides obtaining a high sales price, you may have the opportunity to negotiate a lower price.
Make an Appealing Offer
You must provide the seller with a compelling argument for accepting a lowball offer when bidding on an overpriced house. To make your request stand out, one tactic you can employ is to present rewards or alluring conditions. A flexible closing date as well as your letter of mortgage pre-approval may be included. To entice a buyer, you might also include a sizable earnest money deposit or fewer contingencies.
If the seller is not financially motivated, consider writing a letter describing how you intend to maintain the property or your vision for its future. Sometimes, hesitant sellers have a sentimental attachment to their homes, and they may be more willing to sell if they know that an Albuquerque property manager will provide excellent care of it. To help them let go a little easier, try to show them the home will be enjoyed by a nice family or young professional. These factors might make your offer stand out from the competition if it is one of many.
Hire an Experienced Buyer’s Agent
You must work with a skilled real estate agent if you want to have a good chance of convincing a seller to reduce their asking price on a property. You will need somebody to aid you in negotiating with the seller and to advise you when to walk away. Even if you’ve done everything possible to make your initial offer appealing, sellers of overpriced homes are unlikely to accept it. With a skilled agent on your side, you will be better equipped to participate in multiple rounds of negotiation without the process taking up all of your time.
When the time comes to withdraw from the transaction, your real estate agent will also be willing to support your choice. Some sellers will not negotiate their desired price, even if it is excessively high. It is best to move on if, despite your real estate agent’s assistance, you have exhausted all possible avenues without success.
You can make offers with more assurance on any property you believe will make a fantastic rental home by using techniques like these. Nevertheless, it can take a lot of time to manage your Albuquerque rental properties, negotiate with sellers, and complete multiple comparative market analyses at once. Why not employ someone to assume these responsibilities on your behalf? At Real Property Management Expertise, 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 505-796-8047.
Originally published on May 5, 2021
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.