In today’s real estate market, investors face challenges that demand innovative strategies. While the hurdles may seem daunting, there exists a silver lining — a seemingly obvious but for some reason, under-utilized avenue that savvy investors are leveraging to their advantage: making offers below the listing price.

In the words of Avery Carl, CEO and Founder of The Short Term Shop: “In this market, it’s not just about negotiating; it’s about reshaping the possibilities. Prior to 2020, making significantly lower than asking offers was the norm. For some reason, many investors have forgotten that since the post Covid real estate boom that required significantly OVER asking price offers due to high buyer competition. Making offers below the listing price isn’t a compromise; it’s a strategic move to unlock hidden potential, and really, just getting back to real estate investing basics.”

Embracing the Opportunity

Investors are using this window of high interest rates and lower buyer competition to capitalize on the opportunity to submit offers below the listing price, turning a challenging market into a realm of possibilities. The primary advantage lies in the flexibility it provides to structure deals that make financial sense. When a property doesn’t meet the numbers at the original listing price, exploring lower offers becomes a strategic, albeit a bit obvious, move.

According to Carl, “Real estate is a puzzle, and sometimes you need to rearrange the pieces to see the full picture. Making an offer below the listing price isn’t undercutting, it’s finding the right fit for both the buyer and the seller in a complex market. Many investors seem to have forgotten what negotiation was like before 2020, and rather than make a low offer, they just scroll past listings that have less than exciting prices.”

The Search for Value

The key to unlocking success in this climate is an exhaustive search for great deals that can be molded to fit a discounted sale price. Investors should be actively scouring the market, identifying properties with untapped potential that can be unearthed through strategic negotiation. Properties with high days on market or with poorly photographed listing photos are a great place to start.

Carl advises, “Real estate deals aren’t always there for the taking, you have to create them with a determined eye. The market may be challenging, but every rejection is an opportunity to refine your approach and uncover value that others might miss.”

Seizing the Moment

Now is the time for investors to roll up their sleeves and put in the work needed to secure a great deal. Seize the moment, navigate the complexities of the market, and craft offers that align with the unique dynamics of each property.

Carl went on to say, “In this market, patience is your ally, persistence is your weapon, and every rejected offer is a step closer to a deal that aligns perfectly with your goals. The real estate journey is a marathon, not a sprint.”

In conclusion, while the real estate market may present challenges right now, it is far from hopeless. The path to success involves recognizing the opportunity in making offers below the listing price, actively searching for value, and persistently pursuing deals until the right one materializes. This is not just a momentary trend but a strategy that can redefine your real estate journey in the present and shape a more prosperous future.

About Avery Carl

Avery Carl, Founder of The Short Term Shop brokered by EXP, was named one of Newsweek’s Top 500 agents in 2020, Wall Street Journal’s Top 100 in 2021, Top 50 in 2022, and Top 10 in 2023, as well as the New York Times Top 100 in 2022. She and her team focus exclusively on vacation rental and short-term rental clients, having closed well over $2.5B in sales. To join over 5,000 happy Short Term Shop investors, please visit https://theshorttermshop.com/