How to Tell if a Home is Overpriced
One of the biggest mistakes you can make when selling your home is pricing it too high, and one of the biggest mistakes you can make as a buyer is not recognizing when a home is overpriced. In today’s market, it is crucial that a home is priced appropriately. Sellers need to put their most competitive price forward to ensure the property will at least be looked at, and buyers need to be educated on how to tell if a home is overpriced. Here are The Cesi Pagano Team’s top five tips on how to tell if a home is overpriced:
- Neighborhood Prices: It’s a given that most neighborhoods have varying homes, so the comparison isn’t always going to be dead even. However, if a home is priced considerably higher than the other homes in the neighborhood, especially ones that are similarly sized and have comparable features, odds are it’s overpriced.
- Comps: Comparables or “comps” are what Realtors use to recommend a sale price. Comps refer to houses of a similar size, with similar features in a similar neighborhood. If a home is priced significantly higher than its comps, the home is priced too high.
- Days on the Market: If a house has been on the market longer than the average of other comparable homes in the area, it may be overpriced. While it’s not uncommon for high-end homes to sit on the market for years, it is unusual for standard family homes to sit for some time. Be sure to check with an agent to find out how long a home as been on the market before you make your decision.
- Low Offers: If buyers have made offers on the home but the offers are considerably lower than the seller’s asking price, it’s a good sign that the home is overpriced.
- Realtor Opinion: Realtors know what they’re doing! If most Realtors think a home is overpriced, then it is. Any knowledgeable, trustworthy Realtor is going to advise their client to say away from overpriced homes.
Keep these tips in mind the next time you’re out searching for your new home or considering listing your current one.
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