You see a home you love, but the sellers have it way overpriced. If you walk away, you could be walking away from owning a fantastic home. However, if you put a realistic offer on the home, you could be in for a straight rejection or a supreme battle.
Why Buyers Shy away from Overpriced Homes
There are many reasons why homebuyers shy away from the overpriced home. First of all, they want to avoid a fight; or, at the very least, they want to avoid offending the seller. It may be quite an embarrassing situation for the buyer to be caught in.
Many buyers assume that sellers with an overpriced home already know the home is overpriced and that there will be little room for negotiation. If you knew a Coppell property was overpriced on purpose would it even make sense to waste your time putting in an offer? You would probably also assume that the sellers have received a low-ball offer at some point along the line, and that they already rejected it.
Should you still make an Offer?
So the question becomes: should you still go after an overpriced listing?
The best way to find an overpriced listing is to examine the number of days the home has been on the market. Next, ask your agent to perform an analysis on the home and to give you an estimate of what the home is worth. One of the most important things to realize is that, more often than not, the sellers are not even aware that their home is overpriced. Many times their listing agent is afraid of offending them by telling them that their home is overpriced!
Because of the condition of the real estate market, and the number of homes that are on the market at any given time, it may be a really good idea to make an offer on an overpriced home. It is important, however, to come armed with the information you obtained from your own market analysis. A great way to get the ball rolling is to offer the sellers a large earnest money deposit to show your interest.
Finally, understand that, although the seller may have turned down other low-ball offers from buyers, you could be entering the picture at the right moment when the seller is ready and willing to sell the home for less than the asking price. In other words, never assume anything when it comes to buying an overpriced home!