With all of the recent market fluctuations, how are homebuyers supposed to determine how to spot an overpriced home? Follow these steps:
Look at the number of days on the market.
Have you noticed that a home in your neighborhood has had a for sale sign in its yard for months? This could be because it’s an overpriced home. Real estate agents will advise their clients to avoid putting an offer in on an overpriced home, so these listings tend to sit….and sit….and sit. If you’re trying to spot a home that’s priced too high, look at how many days it has been on the market. Most listing websites will display this information, but if you find one that doesn’t, your realtor can easily look it up for you.
Many homeowners list their homes at ridiculous prices because of unique amenities that they may find valuable, but not many other buyers do. For example, an indoor badminton court may seem valuable to the home’s current owners, but could seem like more of a nuisance than an asset to homebuyers uninterested in the game. When looking at listings, look for these unique amenities that may be driving the price of the home up without you even knowing it.
Look at the neighborhood.
Of course, there will be some stand-out homes in the neighborhood that deserve to be priced higher than others. However for the most part, homes within the same neighborhood should be priced roughly the same, especially when two homes are the same size. Ask your real estate agent to pull up other homes within the area that have sold within the last six months to get an idea of what the average price should be. Unless the home you have your eye on has a much higher square footage, look to these homes as a pricing guideline.
Updates or renovations.
If you have your suspicions about whether a home is overpriced or not, check for updates or renovations done within the house. When doing a walk through, if you see things such as scuffed cabinets or floorboards, outdated appliances or chipped paint, this means the home has most likely not been redone in quite a while. These homes that are in dire need of upgrades should not be priced higher than the market value, so beware unusually high listing prices.
The price per square foot of a home depends heavily on the location of the property. Even though a home may seem overpriced based solely on its square footage, it doesn’t necessarily mean that it is. Homes in sought after neighborhoods or parts of town can be priced significantly higher than others, so don’t immediately throw these listings away without discussing the value with your realtor.
Need help avoiding overpriced homes on the market? Contact the experienced agents of Coast 2 Coast Realty at 1-877-585-RELO and get started on finding the home of your dreams!