A few month's back I helped a pair of super duper clients buy the home of their dreams. They loved it. Every square inch. But that's not why I talked them into offering full-price when I knew it was stupidly overpriced.
The home was listed for $500,000.0 but it "comped out" at $435,000.00. The owner had over-improved and over-flashed every single square inch. My initial call to the listing agent went really, really well. She explained to me that she KNEW her listing was bloated with hot air, but that she was "just doing what her seller asked her to do." Right there I knew she was actually an asset to my buyer versus a formidable listing agent who I'd have to negotiate with. Perfect! Her admission that she was a mouth piece and order taker was huge.
Betty (listing agent) went on to gloat about having over SEVEN offers and that "a couple of agents were whining about the comps, but that the seller was ONLY going to sell to a buyer who fell in love with his home (and appreciated it.)" This is where my incredible and unparalleled experience and good looks kicked in. (I expect sarcastic comments below...making sure you're reading.)
I knew that if my buyer offered FULL-PRICE with a sappy and ridiculous letter stroking the sellers ego that we'd get the home. And we did.
More importantly, I KNEW this home would NEVER "hit value" or APPRAISE. And it didn't The home home appraised @$450,000.00, 15k above the comparable sales. My buyer gladly split that overage as we were able to cut the difference with the seller.
1. Clear the table with a ridiculous over priced listing by offering it.
2. Genuflect and praise the seller for his amazing ability to build such an out of this world home. Take selfies in front of the home as seller watches from his convertible down the street. This makes him feel like a boss.
3. KNOW your comps, neighborhood and business and let the process break the seller. Who says you can't PROTEST the appraisal as a buyer? Sounds ridiculous, but it makes sense!
4. Ha Ha. Play the game then brag about it.