Is That Home Overpriced? Don't Pass It By

By: Matt Barker
Submitted: 2008-10-07 18:09:43
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There are houses that you might be overlooking because they are priced significantly out of your range. However, don't discount these properties immediately. With the help of your Realtor®, you might be able to find an overpriced home and make an offer that will be accepted.

Why do sellers overprice homes? Well, it starts out with wanting the most bang for their equity. It's nicer to believe that one's home can sell for $450,000 instead of $350,000. Also, many sellers are ignorant of what makes homes sell for lower or higher. Maybe the house down the street sold for $50,000 more than what one's house is worth, but maybe it has an extra bedroom, remodeled kitchen or finished basement that bumps up the price.

Another reason is unscrupulous behavior on the part of the agent. If the agent can hang a sign outside a property, they are getting extra exposure. They might pull in more deals through people who call about the original house but end up getting shown another. Or, the agent might think that they can get the seller to drop the price to something more reasonable as the weeks go by. (This is an excellent time to note that one should go with the agent who has the knowledge and the honesty to tell you what your house is worth, not the agent who quotes you the highest selling price!)

Back to the overpriced home. Look above your upper price range and see if there are any properties that fit the definition of "overpriced, not-going-anywhere". If your Realtor® knows the neighborhood, they should have a good idea of what homes should go for and whether it's worth putting in a lowball offer. Ask about the DOM (days on market) for the area and see which homes exceed this timeline. If you find a property that appeals to you, it's time to look at an offer.

The seller has to be ready to sell if they are going to accept an offer significantly lower than their listing price. There are sellers who, for whatever reason, put their house up for sale but aren't really ready to sell. They are not about to accept the fact that their house just isn't worth what they think it should be. Don't waste your time trying to convince this seller; they will either sell or they won't and, right now, it's on the 'won't' side.

Some sellers get offended by lowball offers. This is not your problem, but there are some things you can do to smooth the way for your offer and avoid rubbing a seller the wrong way. You can tell your agent to go in person to lay the first offer on the table. Information about the recent sales of comparable homes may also help the sellers see that your offer is not an insult but rather a reasonable figure. Be willing to negotiate with people who are open to lowering the price. Sometimes it takes a fair amount of communication to achieve a great end result.

With a little time spent with your Realtor®, searching and evaluating homes, you might luck out on an overpriced one. It doesn't hurt to at least see if the sellers are open to negotiation.

Article source: Expert Articles