When it comes to buying a new home, buyers have a lot to worry about. Price shouldn’t be one! Here’s how to easily spot an overpriced home.
Price the Neighborhood
One of the first, most obvious ways is to jump online and do some price comparisons of nearby homes on your own. Analyze the number of home sold and the average sale price. Check out how many are currently, actively for sale. Pay careful attention to square footage, number of bedrooms, basements and lot size. You want to be comparing apples to apples. If the price of the home you’re considering is considerably higher there may be other factors you can’t (or don’t know enough to) find. Or, it could be the owners have simply out-priced the neighborhood.
Days On Market
If you see a home that has been sitting on the market unsold for 60 days or more, chances are it’s overpriced. That’s not the only reason it hasn’t sold. And we’ll explore those reasons further. But price is usually the main reason.
High traffic, No Offers
In this tight inventory market it seems any time a new home comes on the market there are a flurry of home showings the first few days. But, then the number of showings trickle off. And no offers. Why? The buyers and their agents have access to the same information you do. They’ve done the comparisons, too.
No Scheduled Showings
This seems pretty obvious but if a home is actively for sale and people are not lining up to see it the kind of market we’re experiencing right now – it’s DEFINITELY overpriced.
Too Much Stuff
Many times, overpriced home are simply trying to make up for unique and unnecessary things that have been done to them. And the owner is trying to recoup the costs. These are the extra features, renovations and added amenities buyers don’t really need or want. It could be the seller put off important maintenance for years, had to spend a ton of money to get the home ready to show and now they’re in too deep. This home might be worth buying for a good price, but not that high a price. Move along.
We explain to sellers all the time there are four main factors which influence whether a home sits or sells:
- Bad or no marketing
Sometimes it’s a combination of two or all four of these factors, but only one is out of the seller’s control. Contact us today – we can help you determine if any home is priced right!