When you are shopping for a home, you always want to get the best value for your money. The sure way to make a bad investment is to buy a home that is overpriced. While it can seem like a major task to be able to identify an overpriced home, there are actually several ways that anyone can tell whether a not a home has a selling price that is way too high.
As you shop for a new home, be sure to compare the prices of homes with others in their neighborhoods. Unless a home has something special to offer, it should not be more than 10 percent higher than the other homes in the area. Go to a variety of open houses in the same neighborhood and compare features. After a few houses, it should become apparent which places are overpriced.
Time On The Market
If you are considering a home that seems a bit pricey, check and see how long that home has been on the market. If it has been on the market longer than six months, then it is probably overpriced. Any home that has been looking for a buyer for longer than a year is definitely well overpriced for its neighborhood.
Too Much Work
There is such a thing as doing too much remodeling work to a home, and those homes usually wind up being overpriced for their neighborhoods. There is nothing wrong with being a proactive homeowner who wants their home to look the best, but some homeowners put too much value on home improvements and put a price tag on their home that is way too high.
In this day and age of computer databases, most realtors post scheduled showings for homes on a central website that all members of that network can access. Ask your realtor to see how many showings a particularly pricey home has had in the last month or so. If the home is not averaging at least one or two showings a week, then the high price is probably putting people off.
Too Many Unique Features
A real marble fountain with a real copper statue looks nice in a front yard, but is it really necessary? Along with spending too much on remodeling, some homeowners think that adding expensive amenities will all but ensure that their home will sell. The end result is an overpriced house with a lot of nice things that no one really needs. As you walk through an expensive house and see a lot of unique features, keep in mind that those features are making the house overpriced.
The housing market is always competitive, but some homeowners get the wrong idea on how to attract buyers. The homeowners who pour money into their homes for remodeling projects and special amenities are only making their house overpriced for their market. The last thing a home buyer is going to want to do is pay too much for a home when they don’t have to.