Take another look at overpriced properties

Even if you think a home is overpriced, that’s no reason not to view it and possibly make an offer for it.

So says Dr Piet Botha, chairman of the Nationlink estate agency group, who notes that there are several reasons that overpriced properties usually don’t attract offers – all of them mistaken.

“First, buyers usually assume that the sellers know the home is overpriced, and that if they were willing to sell for less they would simply lower the price. However, neither sellers nor their agents are infallible and it is quite possible that they will continue to believe the home is well-priced until they start getting offers at a lower level.”

Secondly, he says, prospective buyers don’t want to offend sellers. It goes against human nature to offer much less than the asking price, when in fact, the sellers might be highly motivated to do a deal and happy to have an offer of any sort.

“And thirdly, buyers may assume that sellers have already turned down low offers because someone else must surely have offered them a reasonable price at some stage – when in fact there may have been no offers at all.”

In short, says Botha, if you see a home that you would like, and believe it should actually be priced at your affordability level, it is really worth your while to make an offer for it.

“Of course not every home that is overpriced will ultimately sell at its real market value. But many homes that are listed at unrealistic prices are owned by sellers who are really motivated to sell and will be willing to listen to the reasons why they should sell at a reduced price to the buyer with the courage to make the offer.

“They may be relocating to another town, for example, or keen to change their lifestyle, or perhaps even be facing financial difficulties. Alternatively you may have cash in hand and be able to offer them a deal that is not contingent on you selling your existing home.

“In any case, it is worth noting that there are gems hidden among the overpriced inventory on the market and that as a buyer you should not just ignore them. Remember, ‘fortune favours the brave’ and by having the courage to make an offer you may just acquire your dream home at the right price.”

Aticle from: www.nationlinkproperty.com