There are some common real estate pricing mistakes that some homeowners make for a variety of reasons when selling their home. Whether it’s because a seller is greedy or because they don’t believe the facts, buying an overpriced home can be quite difficult.
Just because buying an overpriced home is difficult, doesn’t mean that it’s impossible. Making an offer on an overpriced home must be done carefully if you want to be successful. Here are three tips to help you prepare an offer on an overpriced home:
Hire A Real Estate Professional Who Knows How To Negotiate – It’s very important when buying a home that you have a real estate professional representing your best interests for a variety reasons. One of the most important reasons is because they are going to be responsible for negotiating on your behalf.
When attempting to make an offer on an overpriced home, it’s vital that you’ve hired a buyers agent who knows how to negotiate on a home that is overpriced. One of the best interview questions to ask a buyers agent is what their experience is with negotiating on an overpriced home.
Since not every home that is listed for sale is priced correctly, it’s possible you may encounter an overpriced home, so being prepared for this potential situation is important.
Determine If The Home Is Really Overpriced – One of the top reasons why a purchase offer is rejected is because an offer is too low. Before deciding to submit a low ball offer on a home you feel is overpriced, you and your real estate professional need to first determine if the home is really overpriced or not.
There are several ways to determine if a home is really overpriced or not. A great statistic to review to help determine if a home is overpriced is average days on the market. A top real estate professional is able to determine what the average days on the market are for a given real estate market. If a home has been listed for 90 days and the average days on the market in the local neighborhood is 30, there is a strong chance this is a good example of an overpriced home.
It’s important to remember that the majority of real estate markets are different and that comparing average days on the market is not a guarantee a home is overpriced.
Be Prepared To Provide Supporting “Evidence” Of An Overpriced Home – When determining how much to offer for a home, especially an overpriced home, it’s important to have supporting “evidence.” One surefire way to have an offer rejected when making an offer on an overpriced home is to not include any supporting information to justify the low offer.
The most popular way to provide supporting information with an offer on an overpriced home is to include a detailed comparative market analysis, commonly known as a CMA. An experienced buyers agent will provide the sellers real estate agent with a detailed CMA to help support the low offer. A detailed CMA should include details on several recent comparable sales in the close proximity that prove that the home is overpriced.