This post has been adapted from Joe Manausa’s article How To Make An Offer on An Overpriced Home
One of the most prevalent issues in the housing market today is overpriced homes. Many are asking, how do you make an offer on a home that is overpriced? This is not a simple question, and it does not have a simple answer. Soon to be home buyers asking this question probably don’t understand the many different types of sellers that exist in the housing market today.
It’s important for a home buyer to understand that there are sellers out there with different levels of motivation, representative of the near 80% of homes on the market failing to sell. In today’s unstable real estate market, choosing a seller with high motivation will allow the buyer to make a safe purchase.
Seller motivation levels can be classified in three distinctly different categories:
1. Considering Selling– there is no real need for this homeowner to sell their house, but if they can get their price they will. This type of seller is probably not one you will find trying to sell in today’s market, so if you do stumble into a viewing of this property you’re likely to find an overpriced home.
2. Desire to Sell– This person needs to seel but hasn’t priced the home correctly. This could be because they feel they have plenty of time to sell
3. Must Sell– This seller needs to sell now and the asking price illustrates that. This house has a great chance of selling because it is most likely the best offer in its category.
How To Do a Smart Home Search
There are two main reasons to search for homes for sale online. First to get a “feel” for how much bang you can get for your buck, and two to target specific homes that you actually may want to buy. To get an idea of what is on the market you can do a simple price range and area home search. Using a map-based MLS home search tool will allow you to zoom in to the area in which you are interested in living.
When you establish a final list of homes you are truly interested in, we recommend contacting a real estate professional who is skilled in extracting the best buys from the market. This will ensure that you are getting the most home for your dollar.
An important factor in doing a smart home search is to weed out the first two types of sellers mentioned before. You want to be where the grass is greener as a buyer, and with someone who must sell you are sitting on a lush green lawn. These sellers are highly motivated, and are much less likely to make you overpay for a new home.
How To Make a Great Offer To Buy a Home
Both new and experienced prospective home buyers are always asking how to make a great offer to buy a home. The answer to this question is almost always different for each property, but there is one unanimous key factor. You should make an offer that is so compelling that the seller is scared to lose you as a buyer. The process of making a great offer can be outlined with these few key points:
· Do not view properties that are poorly priced
· Research the probable sale value of the home
· Try to understand the motivation of the decision maker
· Head into the home buying process free of emotions-it’s just business!