When looking to buy a home, you will most likely come across properties that you should explore thoroughly before making an offer. If some of the residences you see appear to be your dream home, don’t be fooled by first impressions. Some home sellers nowadays don’t put much effort into researching the market and setting a fair price for their property. Furthermore, they sometimes think that their attachment to the property justifies them to ask for higher prices. Or that it’s an excellent strategy to overprice a home and hope for the best. As a result, how do you know you found the right house and how to identify an overpriced home? These are the questions that we will help you answer in this article. So without further ado, let’s look into some of the signs that tell you that a property is priced higher than it should be.
1. Look closely at the location of the property
When looking for a property, one of the first things you should consider is location. If a good neighborhood can have homes with higher prices on listings, a less desirable one can’t compete. As a result, when you find a property you like, check the neighborhood ratings. If it’s a reputable neighborhood that is safe, quiet, and has all the amenities you need, it can be possible to have some higher prices. On the other hand, if the locals complain about noise, pollution, or a lack of facilities, a high price for a house there is unjustifiable.
So, our first advice is to always talk to the neighbors before making any offers on a property, especially if you are a first-time homebuyer. What you read on the internet is not always accurate, and some sellers may prey on your inexperience.
2. Investigate the prices in the area
We did mention that, in a good neighborhood, it can be possible to find homes with higher prices. However, how do you figure out how high is too high? Well, the answer is quite simple. You need to look at the overall neighborhood range. What is the usual selling price in the area? How much did recently sold properties cost? Find the answers to these questions, and you will be one step closer to finding the right price for a property in the area.
However, never let the size of a home mislead you. A larger house should not be much more expensive than a smaller one. Yes, different sizes do have different prices, but you should be able to compare.
3. How long has the property been on the market?
A great way to identify an overpriced home is to look at how long it has been on the market. If it’s been more than 60 days, there is a big chance of it being overpriced. The period for a property to be on the market is somewhere between 30 and 60 days. If that time passes and the property is still not sold, there are two possible reasons. Either it’s a high-end home, in which case it is normal for it to be on the market for a longer time. But that is easy to figure out. Either it’s overpriced, in which case you should stay away from it. Well-priced properties will sell like hot bread. So you need to move fast if you see listings that have recently been posted but with a lot of offers. However, we shall discuss that in the next section.
4. How many views and offers does the property have?
The property has been on the market for too long and has just a few views? That is what we would call a red flag. And if the property has no offers, that’s an even greater red flag. The level of interest in a property may reveal a lot about its quality. Therefore, take some time to research how many views a property you are interested in has. At the same time, look closely at the offers made on the property. If most of them are under the listed price, it usually means that the price is too high.
However, if the home has a lot of views and a lot of offers, it suggests you’ve found a great property, especially if you see offers that are a bit higher than the price requested. That means that people are genuinely interested in the property. In that case, you should make your offer fast and competitive. In addition, if you can afford to pay cash, be prepared to get to the top of the list. Many home sellers want to sell their property fast and without financial issues from the buyer.
Furthermore, if you by any chance are selling and buying a property at the same time, and the sale comes first, don’t despair. You can take the advice of the experts from nycministorage.com and rent a storage unit where you can deposit your belongings until you have your new home. If you choose to store your belongings, it will be easier to bring them in gradually as you move in. Unpacking, remodeling, if necessary, and decorating will be a lot easier if done in stages.
5. Look at the state of the property
Are there too many unnecessary amenities added to the house? Can you see that there have been renovations done recently? Those are also red flags that you should watch out for when buying a home. Many homeowners know that if they make improvements before selling their homes, they can ask for a higher price. And that can be true in some cases. However, not all upgrades justify a higher price. For example, is it worth going over budget for a house that has a refurbished kitchen with more appliances? Will you ever find a use for them? Are they so pricey to be worth a considerably higher price for the house? Think of that before you decide on anything. With the difference in money, you could upgrade the kitchen to your needs, and it would probably be cheaper.
6. Consult your Realtor
The best way to identify an overpriced home is to work closely with a Realtor. Professionals in the real estate market can guide you through the offers and tell you what is worth your time and attention and what you should skip. They have the best tips for finding the ideal home and will save you a lot of time, effort, and money in many cases. Therefore, if you don’t have a Realtor, you should contact one ASAP.
Final words on how to identify an overpriced home
There are many ways to identify an overpriced home. For instance, you can research the neighborhood, the overall prices in the area, and the views and offers a property has. And if you realize that all of this house hunting isn’t your strong point, contact a Realtor. He can do all the hard work for you and ensure that you will find the house of your dreams at a fair price.
About Gerardo Zavala, Realtor
There is a true passion for connecting people with real estate that makes me fall in love with my career over and over again. While my title says, REALTOR® I think I am much more than that. For example, I am present and actively listening to my client’s needs, on the spot when things are urgent, and by your side to say “congratulations.” Most of my clients will say that I am a connection away from support no matter the situation, day, or time. In my opinion, customer service, educating the client on progress and next steps, and overall satisfaction are my top priorities. How can I help you?
