As an investor in Honolulu, 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. If this happens, don’t worry. Just because the property seems to be overpriced doesn’t mean you’ll never be able to buy it. 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
If you honestly think that a property is overpriced, you can conduct 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. Remember to check how long the property has been listed. Check the market for recent sales. If the property you want is still listed above other recent sales, or if the property has been on the market for a long time, then 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. This might lead you to uncover the motivation behind the sale. Maybe the seller isn’t that much interested in a high sales price — that means you can negotiate the price down.
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 present feasible terms that can make your offer more attractive. You could include things like a flexible closing date and your mortgage pre-approval letter. To sweeten the deal, you can throw in an earnest money deposit, or fewer contingencies. Doing this might even boost the chances of having your offer stand out from the rest!
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. In so doing, you’re allowing someone else to help negotiate the terms with the seller. It’s quite likely that these sellers of overpriced homes will not immediately go with the first offer they get, regardless of how good the offer. With an experienced agent beside you, you will be able to handle the negotiation process more smoothly. 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 even with the help of the real estate agent you still can’t move forward with the deal, maybe it’s time to let it go.
It’s strategies like these that can really help you when making offers on your next great rental house. Still, completing multiple comparative market analyses, negotiating with sellers, and maintaining your Honolulu 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 Alliance, 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 808-427-0611.
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.