Bargain can be found in overpriced properties: 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.

Patrick Bright is a Sydney-based buyer’s agent and the author of four real estate books in his ‘Insider’s Guide’ series.