Chances are an overpriced home will simply remain on the market. Once a home has sat for a few months, you will likely see a price reduction. That may be the time to pounce, as the home sellers at that point are aware that their home is priced too high for the market. However, waiting it out could backfire on you, as well, as you may not really know the sellers motivation for selling, and another buyer could beat you to the punch. Make and offer and back it up with comparable sales.
A seller doesn't want to see an offer that is far below their asking price, and many sellers will outright reject the offer or not be flexible regarding negotiations. However, if you back up your offer with comparable sales, you may eliminate the argument. You don’t want to insult the homeowner, and you certainly don’t want to stall or completely foil negotiations, so it may make the best financial sense to back up your offer with clear comparables.
Learn about the seller'ss motivations
One of the best ways to determine if the seller will be receptive to a lower offer is to learn about his motivations for selling. Is he relocating? Is he going through a divorce? Sometimes the best way to understand where you stand is to find out if the seller is motivated to sell. Once you have an understanding of where the seller stands you can make much more headway when it comes to making an offer that is far below the asking price.
Ask your realtor to contact the seller's realtor
Often times, two realtors talking amongst one another can shed light on the homes price. Is there a reason the seller is asking this price? How did the seller come to this price? Insight is key when making a low offer, as it allows you to better approach the seller and his or her unique situation. Posted by Carey Frankel on
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