You're faced with a seller overpricing their property. How do you negotiate a fair deal?
Facing a seller who overprices their property can be tricky, but with the right strategies, you can negotiate a fair deal. Here's how to navigate this challenge:
What strategies have you found effective when negotiating with sellers? Share your insights.
You're faced with a seller overpricing their property. How do you negotiate a fair deal?
Facing a seller who overprices their property can be tricky, but with the right strategies, you can negotiate a fair deal. Here's how to navigate this challenge:
What strategies have you found effective when negotiating with sellers? Share your insights.
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Acknowledge the seller's efforts: Recognize the care invested in the property. Example: "This home clearly reflects the love and effort you've put into maintaining it—it's truly unique." Share market insights: Present data on comparable sales and buyer expectations to highlight realistic value. Example: "Similar homes in this area have sold for ₹15–16 crores over the past six months." Propose actionable solutions: Suggest strategic pricing or staging for better appeal. Example: "Starting slightly above market value and adjusting based on feedback can help us find the right balance." Be patient yet firm: Stress the importance of securing a timely deal in a fast-moving market.
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To negotiate a fair deal on an overpriced property: Do Research: Compare similar properties to understand the market value. Understand Seller’s Motivation: Find out why they priced it high. Present Evidence: Show data on recent sales and market conditions. Make a Reasonable Counteroffer: Offer a fair price based on your research. Be Ready to Walk Away: If they’re firm, be prepared to explore other options. Negotiate Other Terms: If the price doesn’t budge, negotiate closing costs or repairs.
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Comparables. The market speaks the loudest with respect to value of a home/property. Referencing comparables has been an excellent way for me to bring all parties to the same page. I have even taken potential sellers to competing properties. It is amazing how seeing it in person helps with the price point decision making.
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In Mumbai's real estate market, sellers often overprice properties due to sentiment or unrealistic expectations. Start by researching comparable sales to determine the fair market value. Share these insights politely, highlighting tangible factors like condition and location. Make a reasonable offer, leaving room for negotiation, and emphasize market realities—overpriced properties often remain unsold. If price flexibility is limited, explore terms like payment schedules to add value. Patience and professionalism are key. Sometimes, involving a skilled broker can bridge the gap and secure a fair deal.
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There are numerous things outside of the overall sales price that can be used to negotiate - think about the different things all people unconsciously budget besides money - Time, items, convenience. See if there are other parts or the contract to negotiate - closing time frame, non realty items, option period, etc.
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First, I agree with Mary Ann Marietti's post. Another way to approach someone that is too high on their ask is with terms. For instance paying for it over 10 years from now would be OK to overpay for control of the property today. Or getting to the "why" they want more for it. This often happens when the current owner has a property that can be up-zoned, therefore they feel justified to ask more. Might be an opening to get terms to give them a higher price for a roll over of the property into an LP/GP structure and make the deal happen with less capital outlay or need for additional investor taking % of deal, and possibly even less expensive as a result.
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To negotiate a fair deal with an overpricing seller, start by conducting a thorough market analysis to present comparable property prices in the area. Use this data to demonstrate the realistic market value of their property. Highlight the potential impact of overpricing, such as longer selling times or limited buyer interest. Build rapport by understanding the seller’s perspective and emphasizing mutual goals. Offer solutions, such as flexible terms or minor adjustments, to meet their expectations while ensuring the deal remains competitive.
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Navigating an overpriced property can be tricky, but it's a common challenge in real estate. It's important to understand the seller's motivation, are they under pressure to sell or are they testing the market? Once that is established, I present the seller with recent comparable sales and market trends to establish a realistic price range. Highlight the risks of overpricing, such as: • Longer time on market • Missed opportunities with qualified buyers Try to align the price with market realities while respecting the seller's goals. Sometimes, letting the market speak through showings or offers can be the most effective teacher. Ultimately, your role is to guide sellers to a decision that serves their best interests.
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When dealing with an overpriced property, here are a few strategies to consider: Market analysis: Provide the seller with data on comparable properties, highlighting why the asking price is too high. Focus on value: Emphasize the value of a quick sale over holding out for a higher price. Avoid ultimatums: Instead of making ultimatums, emphasize that you're still interested in the property, but only at a reasonable price.
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