How to Spot an Overpriced Home – When searching for a home it can be easy to get caught up in finding “the perfect match.” You may find the home of your dreams and not even notice that it is overpriced! Here are some tips to help you spot an overpriced home.
What are comparable homes in the area selling for?
– The price of a home is dependent on the area. It could be an amazing house in a moderate area and still have a lower price, or a shabby house in a high scale area and have a much higher price. Check to see what homes in the neighborhood are selling for. Is the home you are considering priced similarly? If you find that it is not comparable to what other homes are selling for then it could be overpriced.
How long has it been on the market?
– Oftentimes when a home has been on the market for a high number of days it is a good indication that it is overpriced. Follow the advice of your Real Estate Agent, they will have a good sense of why a home may not be selling. If there are few other offers or showings booked then others may have been tuned into the high cost.
What is the current Real Estate Market?
– Just like with most products in life, the economy has a lot to do with the price of a home. In a slow economy a home won’t be able to sell for as much as it would in a booming market. Areas with low numbers of unemployment and low inventory will result with higher priced homes, though they should still be comparable to other homes in the area.
Where is it located?
– The location can make or break the home pricing. Some aspects of the home location may make a home worth less. Examples are low rated schools, located on a busy street, low income areas, lots of residents, and lack of area amenities, recreation, and entertainment.
Does the home have updates?
-A home should be priced lower if there is a lack of updates that bring to mind many remodeling plans for the buyer. A well kept home with new updates will be worth the higher price. Some things that will indicate that a home should have a lower price are homes with many needed repairs, peeling paint or wallpaper, bad or outdated fixtures, poor installation of updates such as floors and cabinets.
Is the price based on improvements?
– Improvements that warrant a higher price include updated kitchens, bathrooms, decks and other add-ons. These are all big areas and big improvements that attribute to the higher value. However, if a home is priced based on the smaller improvements and repairs made then it does not warrant a higher price.
Keep these tips in mind when searching for homes! What do you think of these tips? Comment to share with us!