Making An Offer On An Overpriced Home

One of the great things about having a real estate blog is that we get to see much of what our customers are thinking and doing in their efforts to buy a home or sell a home. Just the other day, I saw the following question that was entered into a search engine which pointed the searcher to our site:

How do you make an offer on a home that is overpriced?

While this seems like a simple question that should have a very simple answer, it made me realize that this home buyer, like many soon-to-be home buyers, does not understand the different types of home sellers that exist in today’s real estate market.

Understanding Home Sellers

With nearly 80% of the homes on the market failing to sell, it is important for a prospective home buyer to understand that there are home sellers out there with different levels of motivation. Choosing the sellers with the highest motivation will allow the buyer to make a safe purchase in today’s crazy real estate market.

I like to classify seller motivation levels in three distinctly different categories:

1. Considering Selling – This homeowner does not really need to sell the home. If they can get their price, they will sell. If not, they will stay in their home. This type of homeowner will not sell their home in today’s market, so home buyers who actually view the property are just wasting time.
2. Want to Sell – This homeowner has a real need to sell, but has not priced the home correctly for one of many possible reasons. Often times, this homeowner feels as if they have plenty of time to sell, so they are “starting high and will lower the price if it does not sell.” Due to the extreme glut of homes on the market, this homeowner will most likely join the ranks of the 80% “Failed To Sell” group.
3. Must Sell – This homeowner absolutely must sell the home, and the asking price of the home for sale demonstrates this. It is the best buy in its category, and all realistic home buyers view the house. This home has an excellent chance of selling, even in a very difficult real estate market.

How To Do A Smart Home Search

There are two primary reasons to search for a home for sale in Tallahassee. The first is to get a “feel” for how much home you can buy within your budget, and the second is to target specific homes that you actually might want to buy.

If you want to get a good idea of what is for sale and how much home you can expect, all you do is a simple price range and area home search. I would recommend using a map-based MLS home search tool that allows you to zoom in to the area in which you would like to live. You can then quickly see the affordability of the homes in the neighborhood.

But when it comes time to selecting the homes that will make your final list, I strongly recommend working with a real estate professional who really knows how to extract the best buys from the housing market. This is so important to getting a good buy in today’s market that I cannot emphasize it enough.

They key to doing a smart home search is to eliminate the first two types of home sellers. If you limit your home viewing to just homes of highly motivated home sellers, than the likelihood of you overpaying for a home is close to zero! Choosing only motivated home sellers allows you to make an offer on a home that ensures the resulting sales price is a smart buy.