Overpriced homes and how to identify them.

Whether you are in the market to buy a new home, or you are planning on selling your current home it is important to do your homework before coming up with a price.

Putting the wrong price tag on a property can be the difference of your house selling in days or in months, or getting into a house that is not worth what you paid for it.

An experienced agent can definitely help in this process but here are a few tips to help you along the way.

 

Look at current or recent home sales in your neighbourhood.

It is very important to look at current homes for sale in the neighbourhood, also homes that have recently sold. The listing price may vary from the selling price that’s why it is imperative to look at what the house actually sold for.

 

Has the home been on the market for a long time? 

There are a lot of homes that sell within weeks if not days of being on the market.  These homes are typically priced according to the current market.  When a property sits on the market for weeks or months it usually means it is overpriced.  If the flow of interest and offers on other houses in the neighbourhood are good but are lacking on this property it is usually and indication that the property is not fairly priced and may need to be evaluated again.

 

Home improvements.

If the home has a bunch of minor improvements, or if the home has been customized for the old owners benefit this can cause a home to be overpriced. (Not everyone needs a built in tennis court, swimming pool, or theatre room). However an upgraded bathroom or kitchen will add value.  Only large improvements should reflect in the overall selling price of a home.

 

Location.

If the home is in a low income area, near railroad tracks, or the local schools have a poor rating these will all factor into determining what a house is worth. If the house is in a pristine area the house will have a greater value than being in a less desirable area.

 

Overpriced homes can be easy to spot once you know what to look for.

Competitively priced homes will often get multiple offers which will drive the price up anyways so very unlikely you will sell your home for less than what it is worth.

It is in your best interest to contact a trusted realtor to help insure you do not pay or try and sell for too much. This will save you a lot of stress and headaches in the future.  If you follow these few steps you will have the right info to help make the proper decision.

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