Most properties for sale conform to the average price for similar homes in a given area. The forces of supply and demand within that particular market create a natural mechanism that keeps prices within a certain range. Occasionally, however, buyers will stumble upon a property that is oddly overpriced. It belies supply and demand. The house predictably stays listed for a long period with few offers being submitted to the listing agent.

Counterintuitively, many of these exorbitantly-priced homes for sale hide hidden bargains. In this article, we’ll explain why. You’ll learn the reasons few people make offers on these properties, and how you can leverage their inaction. We’ll also take a look at finding these bargains and encouraging their owners to sell.

Why These Properties Remain On The Market

Premium-priced residential properties remain on the market because they attract very few offers. In fact, it’s not uncommon for such a property to fail to attract a single offer. There are a few reasons.

First, most buyers want to avoid embarrassing themselves or insulting the homeowner. Rather than submitting an offer that is significantly lower than the list price, they simply move on to other homes for sale.

Second, homebuyers usually presume the seller already recognizes that his or her list price is substantially higher than the market. As such, they think the owner will refuse to budge – otherwise, why keep the price artificially high?

Third, buyers often make another presumption; they assume other homebuyers must have already made a low offer on the property. So, why bother doing the same if it will only be rejected?

The three reasons above tend to dissuade most people from making offers on overpriced properties. This creates a unique opportunity. The seller may be willing to accept a low offer because he or she has very few options.

Finding High-Priced Bargains

Uncovering these overpriced homes is often as simple as asking your real estate agent to show them to you. Oftentimes, agents will privately consider certain homes to be high-priced, but will avoid sharing their thoughts with the listing agent. This might happen because they want to avoid insulting that person. Or, they assume the other agent already realizes the premium, but is merely following his or her client’s wishes.

Another strategy for finding these properties is to study a “days on market” report. Identify the average number of days a home within the area remains on the market before selling, and look for houses that have remained for a longer period. This might be an indication that the property is priced too high.

Motivating The Seller To Sell

Sometimes, the owner of an overpriced property will hold out for a high offer for as long as possible before becoming desperate to sell. For example, he or she may have moved far away and is thus unable to watch the house. This introduces a number of potential problems, including theft, vandalism, and lack of maintenance.

Another motivating factor involves a second mortgage. That is, the seller may be forced to carry the mortgage on his or her current residence while also paying for the vacant house. This can cause a severe financial drain that makes selling – even for a low price – more appealing.

A motivated seller of an overpriced property is a boon for a savvy buyer. The reality of the market (i.e. supply and demand) keeps the property listed for a prolonged period of time. As a result, the owner often becomes inspired to accept any offer on the table. If your offer is the only one, you may be able to buy the property at a price that is lower than the market.

The key to leveraging this opportunity is to uncover high-priced properties with listings that have grown stale. Then, don’t hesitate to make a low-ball offer. You may be surprised by the seller’s willingness to negotiate.

Author Bio: Great deals available for Shenandoah Valley farm Land” and Shenandoah Valley homes for sale

Category: Real Estate
Keywords: real estate, real estate advice, making an offer, buying a home, buying a house