No one wants to pay too much for a house. It can be a frustrating prospect, plus it makes your payments higher and could make appreciation seem less likely.
If home values fall too much, you could end up underwater, which means owing more on your mortgage than your home is worth.
But you shouldn’t be worried about that.
Fortunately, there are ways to spot an overpriced home. To ensure you don’t overpay, we’ll watch for these signs.
- Its days on the market (DOM) are high. If a home has been on the market a while, it likely means no one who has toured it has thought it was worth the price. This typically indicates a price point that’s too high or something wrong with the home.
- It has a higher price than similar properties. Unless a home has standout or luxury features, it should be priced similarly to those around it. If its price is notably higher for no obvious reason, consider it overpriced.
- It’s gone on and off the market repeatedly. When a house is put on and taken off the market several times, it often means one of two things: Either they’re trying to reset the DOM, or it’s gone under contract multiple times, but the buyers have pulled out.
- Nearby homes are selling much faster. If a home is priced appropriately for its area, size, and condition, it should sell at relatively the same price and speed as neighboring properties.
It’s true that sometimes a home is priced higher due to luxury amenities or other features. If that’s not the case and a home is just overpriced, there are strategies we can use to make the deal work in your favor.
Ready to start your home search? Get in touch today.