5 Signs That The Home You Are Thinking Of Buying Is Overpriced
CoreLogic.
With high prices and a competitive market, plenty of buyers worry about and question whether they’re paying too much for their house. While there is no guarantee that the house you buy today will maintain its value, overpaying, or paying more for a house than it’s worth, is something that can be prevented.
Here’s 5 signs the house you’re interested in is overpriced.
1. It’s been on the market for longer than the neighbor
One sure sign that the house your interested in is overpriced is by how long it’s been on the market. If it’s been on longer than the average for homes in the neighborhood with similar stats, it’s probably listed too high. Ask your agent to pull stats on the house you’re interested in as well as others in the area that have sold recently.
2. Consider the location
Location is a key factor when it comes to pricing a home. For example, if you’re in a highly sought-after school district, you might be paying more than you would for the same home in a different district across town. Pay attention to location and note that real estate values usually track school quality. It might seem overpriced on paper, but worth the investment.
3. The online property listing isn’t getting hits online
In today’s market, real estate agents should know how to efficiently market a house online because most prospective buyers actually start the buying process there. If the home isn’t getting traffic, it’s probably listed too high.
4. There are no other offers
If a home hasn’t had a single offer on it in weeks or months of being on the market, it’s probably priced too high. An accurately-priced home won’t take long to see offers, usually within days or weeks from the initial listing (depending on the market).
5. The home inspection raises red flags
Once a bid is accepted, a home inspection will usually give you information on market value. Hire an inspector with experience, one that comes highly recommended and one that can recommend the right type of expert to review a problem or issue if one is found. If there are inspection issues, weight the costs of the repairs and make sure you can either afford them, or can get the seller to cover them before closing. Serious issues will impact your ability to resell.
If you’re planning on living in a home for a shorter period of time, the impact of overpaying can hurt worse than if you’re staying in the home longer. If you’re planning on staying put for more than 15 years, you’ll have plenty of time to recoup closing costs and build equity.
Feature Illustration: Laura Caseley
Home prices are high and continue to climb–rising 7.1 percent since May 2017 according to