Strategies for Overpriced Offers

  • Erstellt am 2021-12-10 15:41:03

Proeter

2021-12-10 15:41:03
  • #1
Hello friends,

I have been looking for some time for an existing property (single-family house). I would describe the market as "moderately hot" in a nationwide comparison in Germany: standard land values between 200 and 600 €/m². Some municipalities even provide property reference values that for an average single-family house usually range between 2500 and 3500 €/m².
Extended Rhine corridor, direction Ruhr area.
While for other regions here in the forum the slogan "every price is paid" is sometimes called out, this does not necessarily apply here. There are actually always properties that have been listed for months. Sometimes with interruptions, sometimes continuously. Often the price is then reduced by a few percent every few weeks. These are always properties that are from the start significantly above the aforementioned property reference values (sometimes more than double).

Does anyone of you have experience on how to best proceed when you find an overpriced, long-listed property?

Is the real estate agent in such a case more inclined towards the buyer and helps to negotiate the price down?
Or is he under pressure because he has tempted the owner with a far too high sales price, which in the end is not market-appropriate?

If the property can be located based on the listing (without concluding a brokerage contract): is it better to contact the owner directly? Or would there be no chance with him anyway because he still has the high floating price estimate of his agent in mind?

Do you have any further tips on how best to approach this?

Thanks to you
Pröter
 

11ant

2021-12-10 16:22:12
  • #2
Ignore! Counter-question: why do you even bother with "overpriced, long-listed" (and additionally "burned") properties? - that is not a goal-oriented strategy to get a house, but unfortunately highly effective if you want to waste a lot of time with crazy people. You only gain many adventure opportunities to view worthless-to-buy properties and to doubt the mental states of the sellers and the other bidders. "Winners" of such battles will only be found at high cost of much destroyed (borrowed?) money. Better buy before and next to the market. Avoid such properties consistently! Locate properties, but not such from listings. Addressing the owner directly is good - but not with listed properties: they have obviously already taken their first step in the wrong direction. A) make clear ideas 1. where the property should be located 2. what kind of property you are looking for 3. what type the transferor might be B) and if you do not find anything this way, then keep searching - rather even with stricter, but by no means with softened profile criteria! However, consider possibly a two-step approach (with an interim house instead of aiming directly for the permanent house).
 

Proeter

2021-12-10 18:07:46
  • #3
Haha, . When I formulated my original post, I secretly hoped for a response from you (among others). So, thank you very much in advance! I expected a memorable position, but not one quite so clear:


Well, the fact that an incompetent agent and a naive owner are behind a sale does not necessarily mean that the house itself is bad. Eventually, one or both realize that they aimed too high and then the price is reduced. The "burning theory" does not necessarily have to apply either, because by lowering the asking price the property then appears to some prospective buyers for the first time.


I am of course familiar with this position and have already roamed the streets with Barthel's tips. The experiences have been mixed. I will report more on that later so as not to thematically divert this thread. I give the strategy of buying "before and beside the market" a chance, but I have to note that this approach has so far produced significantly fewer potential properties numerically than the search orders on various portals.


Not every owner is happy with their agent. In fact, I once approached an owner directly—and he was immediately very glad about it. He had been pressured by an agent to delete his own listing for a certain time. However, the agent did not have an exclusive mandate. After some time, the house was offered to me 20% cheaper. In the end, I declined it due to the high risks of structural damage. It was then sold a few months later for a price between that in the listing and the offer made to me.
 

11ant

2021-12-10 22:18:43
  • #4

You don’t need to hope for that secretly, you can talk with me directly, after all, my name at gmx (de) is the same as here.

Yes, the recommendation "ignore!" can’t be given any less clearly; otherwise, it wouldn’t help. Otto Waalkes already said that a painkiller has to hurt when swallowing ;-)

Of course, not every clumsily and/or overpriced offered property is a dump. Nevertheless, it seems to me a waste of time to wait for an overpriced price to eventually lose air. Because that doesn’t make the seller any better. And my conviction remains that you cannot do smart business with stupid people.

I am of course very interested to learn in more detail what experiences you have made with which tips. I also offer coaching for this because tips are often only limitedly understood by reading alone (can be).

The quantitatively lesser yield is only one side of the coin ;-)
By "search orders" you probably mean notification filters (?)
 

ypg

2021-12-10 22:29:17
  • #5
Often, very often I think: 11ant advises a lot, but apparently has no own experience in house hunting. If I were to follow your points, I would still be living at my parents’ home ;) Neither. The price has been set for years already by the all-knowing and greedy owner, who thinks their house is the pearl among all houses. The agent just executes, nothing more. For him, a (quickly) sold house is deserved money. An unsold property is (just) work for him, no profit.
 

Rumbi441

2021-12-11 09:46:34
  • #6
These database ghosts of real estate are not listed repeatedly without reason. Not only is the price too high, but most of the time it is also a complete renovation case, leasehold, or even worse, the previous owner wants a life annuity from you for the next 40 years.
 

Similar topics
02.11.2012House financing via condominium ownership10
19.11.2014Financing single-family house - How much can we afford?47
21.03.2015Property and Real Estate Agent16
04.05.2021Broker for owners - benefits / advantages?153
02.10.2018Negotiation strategy with the agent and the seller40
24.10.2018Broker sells house without current building permit. Notary costs?25
24.04.2020How do brokers negotiate the purchase price?43
28.10.2019Sale of condominium via homeowners association or real estate agent55
19.10.2019Procedure and planning plot + single-family house in MTK22
01.11.2019Buying property - How to proceed? Realtor, bank, owner?15
02.02.2020Payment plan (Broker and Developer Regulation) and Developer's payment plan10
05.05.2020Selling a house with or without an agent34
30.08.2020Financing options for a rather high-priced single-family house65
24.06.2021The broker does not take a clear stance on financing. How to behave?42
13.01.2021Broker fraud or tax evasion?63
28.01.2022Apartment sale - agent search order, still commission for the seller?11
08.01.2024Single-family house from 1987. Evaluation of the price and the "necessary" work116
27.01.2024House purchase through agent, now contract terminated18
15.02.2024Close with a different selling price than discussed with the broker?35

Oben