- ryan1982Member@ryan1982Join Date: 2013Post Count: 4
By Patrick Bright
There are really only three reasons why a property doesn’t sell. There is something wrong with it that’s difficult and expensive to fix, the selling agent they have chosen is pretty ordinary or it’s way overpriced for what it offer.
Many people believe that if a property has been on the market a long time thenthere’s probably something wrong with it.
However, the most common reason why a property has not sold is because it’soverpriced.
When a property is overpriced it often takes the sales agent several weeks, sometimes several months, to adjust the vendor’s expectations down to fair market value. By the time they do this, the market perception of that property is that it’s a lemon.
Buying overpriced properties after they have been listed for sale for a long time is often where we get some of the best genuine bargains. The vendors are usually over the stress, open homes and sales process and if you deploy good negotiation tactics at the right time you can get some great deals.
In many of these instances, there have been no offers at all which significantly reduces the buying competition for you.
Alternatively if you find out that the seller has turned down multiple offers for less money, then it might simply come down to a matter of timing. Next time you see a property that’s been on the market for a couple of months or even longer, don’t automatically ignore it as many people do.
If it meets your needs, and the building and pest inspection checks out, then youmight even be able to buy it below market value.zorrohdMember@zorrohdJoin Date: 2013Post Count: 34
Hi Ryan, goodness me you are an early riser on a Sunday!!! Lol
I agree completely with your comment. I will often filter my RE searches by 'oldest first'. What initially may have seemed out of the question can come within the radar after a few months. Although I am now finding (in my town, anyway) that whereas 6 months ago, the 'old' listings of around 7 – 9 months have all gone, and now the 'old listings' are only about 3 months old.
Now the 'old' listings consist of stubborn vendors with over-priced property that has been listed with multiple agents.Tony FlemingParticipant@the-dark-knightJoin Date: 2008Post Count: 396
Some vendors are just delusional. I spent a while trying to get a property and the owner wanted 20k more than a unit that had sold in the same complex less than 3 weeks before. The other unit was in better condition an even had a tenant paying a higher price. The poor real estate agent you could see how frustrated he was with the vendor when they didn;t accept the offer. 8 months later its still sitting on the website/same price lolNigel KibelParticipant@nigel-kibelJoin Date: 2005Post Count: 1,425
This is about doing your due diligence. What I have always down is deal with an area and get to know it like the back of your hand. I list every property in my target area print it out and put it in a scrap book. Then then follow the property with any changes. Generally I approach the property once it has been on the market for around 6 weeks. If the price has been coming down I find that they are very open to an offer.SpongyParticipant@spongyJoin Date: 2013Post Count: 22
Very interesting way to look at it…
Love all these ideas. Thanksjenni_nextplace.com.auMember@jenni_nextplace.com.auJoin Date: 2013Post Count: 36
So, So true. I knew a buyer who purchased a property $100k less than the asking price. They were the third and lowest offer on the property, and because the sellers were so sick of the whole thing they said OK.
Targeting these properties can be well worth your while.
If they don't accept your offer the first time. Let is sit for a bit, then offer again at an even lower price. Most people walk away after the first offer, trying again can be very rewarding.
There are always less buyers interested the longer a property sits because people automatically wonder what is wrong with it and avoid it.