Don’t Be Fooled: How to Spot an Overpriced Home– Home prices can vary for multiple reasons. Prices depend on the area, the school systems, the economy and more. Make sure to do your research and don’t let a seller fool you as you search for your next home. Ask yourself these five questions before committing to a new home:
- What are the current conditions of the Real Estate Market? Just like consumer products and services, the economy’s condition greatly affects the prices of homes. In a slow economy homes will probably sell at lower prices. Sellers will most likely lower their prices. On the other hand, sellers may take advantage of the economy by selling their homes at higher prices when the economy is in good condition. Be sure to consider outside factors before committing to a higher price.
- Where is the home located? Location is everything in some Real Estate markets. When you purchase a home you are also purchasing the accompanying school district, recreational activities and more. If these add-ons have low ratings or a bad reputation, it is more than likely that the house will sell at a lower rate. Be sure to research the area you are searching in to make sure that you are paying the right price.
- What are comparable homes selling for? When you purchase a new home you want to make sure you are getting a fair price. One way of finding out is to research homes of similar size, location and amenities to make sure that the price you are paying is in line with similar homes. If you find that the home you are interested in is advertised for more, the home may be overpriced.
- How long has the listing been on the market? More often than not, if a home has been on the market for a long amount of time (45 to 60 days in the real estate world), the seller usually lowers their price. Follow the advice of your Real Estate agent. They will have some insight as to why the home is not selling. The home may not be worth the price the seller is asking.
- Is the home updated? If there are a lot of updates that need to be done, a home should be selling for a lower price. A well-kept home with modern appliances and reasonable updates will be worth a higher price. If a home needs repairs such as roofing, painting, plumbing, etc., it should have a lower price. The costs of these updates really add up and will only be tacked on to the original home price.
There is not right or wrong when it comes to the pricing of homes. Enlist in the help of your Real Estate agent to make sure you are paying the right price for your new home.
What is your opinion on overpriced homes? Let us know here, or leave some additional tips!