If you’re looking to buy real estate in competitive markets like New York City, San Francisco or Los Angeles, it may seem impossible to get your hands on an attractive, affordable property.
Real estate mogul Barbara Corcoran has some advice: “Shop the overpriced homes,” she tells CNBC Make It. It’s “the secret to buying in some of the most competitive markets in the U.S.”
Here’s why looking slightly above your budget might actually work for you: “One in three homes that come on the market are owned by people who think that home is worth so much more and they come on the market overpriced,” she says. “And you know what happens? It sits and it sits and nobody makes a bid.
“I like to shop the overpriced market because the sellers are discouraged. They were too foolish to price it properly in the first place and then more apt to take a low bid,” rather than let the home continue to languish.
“I know it seems counter-intuitive,” says Corcoran, “but I bought every single home I’ve ever bought by looking 20 percent over my budget, whereas most people were looking within their budget or slightly below.”