How to deal with Over Priced Listings?

[Garry F.]

I am MAD! I just found out that a listing I made an offer on sold 225 days later for 7K (2%) more than my offer. They didn't accept my offer because they were overpriced so my offer seemed like it was a "Low Ball" offer at the time. Then when reality kicks in and the seller comes to their senses I miss the deal because I was the first one.  

My Story: I am looking for another rental. It just so happened the house next door to my current rental goes up for sale. I was really interested but sad to see that the owners priced it TOO high. But I made an offer based on reason and not emotion. The agent gives me the finger for my "low ball" offer. The property gets no action for 200 days, even when other places are going in days. The price dropped marginally every 30ish days. I was waiting for one more price drop to start discussions again and bam! The property went under contract and sold in less than 30 days. I found out once it closed that they sold for 7K more than I had offered. I would have easily paid that if they would have negotiated. Live and learn. 

I am a newer investor and this happens to me a lot. I am the first one to bid on a property and my price is a lot lower than asking but it's always very close to the final sales price. I can't be the only one that experiences this, Is this something that I have to live with or are there tricks and tips you could offer when dealing with sellers who have priced too high?

The Numbers:

Original Listing Price: $374,500

Final Selling Price: $307,600

My initial Offer (on Day 2): $300,000

Comps: $285K-$300K

4 Price drops. $360K, $345K, $335K and then $325K.