Looking for a house to buy that suits you and your needs can be a daunting, time-consuming task that involves a large financial commitment. And because of this, you need to make sure that you are paying a fair price for a house that you want to buy.
Overpricing a home is one of the biggest mistakes sellers can make. It is important to list your home with a fair and competitive price and just as important, buyers need to know how to spot an overpriced home. Here’s a checklist to guide you to be able to spot an overpriced home.
DAYS ON THE MARKET. If the house has been on the market for quite a considerable time, it’s an indication that the house might be overpriced. Competitively priced homes tend to bring more offers and tend to sell quickly. That said, be sure to look at the market history of the home to see if they have reduced the price. Also consider the absorption rate of the neighborhood. Some areas move more quickly than others, so a “long” time is relative to the surrounding market.
COMPARABLE PRICES. One indicator of a home’s value is looking at the listing price of other homes in the same neighborhood. Find out what neighboring properties are selling for or look for homes that was recently sold and for how much. Homes that are in the same neighborhood with similar amenities generally have similar pricing.
CONDITIONS OF A HOUSE. A home that has been updated and cared for meticulously will be worth more than a home that is outdated or unkempt because of the renovation cost. Conditions that would cause a house to be lower includes outdated fixtures, awkward floor plan, rotted fencing, and other obviously needed repairs.
LOCATION. It’s a real estate cliché that location is everything. Location can affect the price of the home. A home is generally worth less if it’s located where schools are poorly rated, located near busy traffic, or neighborhood is filled with unappealing homes. Homes typically have higher values if it’s located near waterfronts, schools are highly rated and or the neighborhoods are associated with newly built homes.
If you are looking to buy a new home or you need help fairly pricing your home for sale, please let us know! Send us an email or give us a call!
Sandy Erickson Real Estate Team of Keller Williams Realty