People’s homes are special to them. It’s where they fall in love, raise their families, celebrate holidays, and grow old. They value those memories and the feelings their home created. Those things are hard to let go of and understandably so. We hold our memories dearest to us. They are priceless.
But for someone buying that home for themselves… Priceless just isn’t an option. Even though we respect that someone has set a foundation in that home doesn’t mean you should overpay to make it yours. Your top priority when finding a home is ensuring you get the best deal possible.
Buying an overpriced home is a mistake that you want to avoid at all costs. Not too sure what to look for in terms of an overpriced home? Here are 5 ways to tell a house is overpriced:
1) The home is listed considerably higher than a neighboring house
For the most part, homes in the same neighborhood with similar floorplans will likely be priced around the same range. So take note of the homes in the neighborhood to see what their asking prices are. If the home that you are viewing is priced $50,000 more than those for sale down the street… It is likely overpriced. So before going to look at different homes, make sure your agent does a comparative market analysis. If the home you are wanting to look at is priced considerably higher than a home down the street, you may want to pass.
2) The home has zero offers
This one is obvious. Your realtor should know about any previous offers the home you are viewing has had. If the home has been on the market for months and doesn’t have any offers made on it, that house is probably overpriced. No offers are a strong indication a home is overpriced. Even if they are lowball offers, that is a sign that the sellers are asking for more than what it is worth in the market and to other buyers.
3) The house is STILL on the market
If a house is on the market still after four, five, or more months… That is a sign the house is, could you guess it? OVERPRICED! After all of those months on the market, every home buyer out there has probably come across the listing. Those other buyers are also seeing that the home is overpriced as well and choosing to pass because of that! If you see that the home has been placed on the market but hasn’t reduced its price; it probably won’t be coming down anytime soon. Homes should be priced accordingly to what it’s valued at but if a seller refuses to come down despite the fact it’s overpriced… It won’t be coming down anytime soon. Time to move on!
4) A neighboring home sold faster
Even if the house you are looking at is bigger or nicer, there will rarely be a significant enough gap in pricing that makes one home much easier to sell than the next. If the homes down the street are selling faster than the one you are viewing, then you should double-check those comparable homes to see what they are listed at.
5) The online property listing isn’t getting any traffic
More than 90% of home buyers start their home buying search online. So real estate agents should definitely know how to efficiently market a home online. Through the many different property listing portals and social media exposure… Getting interested buyers is pretty easy if you do it the correct way and have a good home to list. If there isn’t any traffic for days, weeks, or months then it’s safe to say the issue then isn’t marketing. So if a home isn’t being saved or viewed… It’s not the online traffic that’s the problem. It’s the asking price.
Just because buying a house is an expensive investment… Doesn’t mean you should pay more than what a house is worth. If you notice any of these 5 signs when house hunting, be aware of the possibility of overpaying. Don’t find yourself in a position where you are fighting to lower a home’s price. Especially a home where the sellers are not willing to come down. Watch for these signs and speak with your agent about if negotiating will bring down the seller’s price. If not, move on!