How to Identify an Overpriced House
July 6, 2021 | Posted by: Sherry Corbitt
As a buyer, knowing how much a house is truly worth is vital. With how high the market is right now, many sellers are raising their prices to significant degrees. Knowing if a house is overpriced can help you search for a home while saving a lot of money.
Compare the House to the Area
When you look around the neighbourhood and the houses nearby, you can get a broad idea of how the home you’re looking at should cost. Of course, there may be some factors which can make the house more expensive than others. This could include the property size and if there are special features, such as a pool. Yet if it is evident that the house is similar to the ones around, you can be certain that the seller is raising the price.
The Condition
The price of a house can vary, depending on what condition it is in. For example, if the house has had renovations completed, especially new ones, the price will undoubtedly be higher. Yet if the home is older and has issues involved, you can be assured that it will be lower. Then if a seller has the house raised to a high price and it has its problems, both inside and outside the home, you can recognize that it should be lower.
Time Period
It would be wise to see how long the house has been on the market. Typically when there is a house listed at the proper price, it will sell pretty quickly. Yet if there is a house that has been on the market for a while, you can know that something is not correct. In most cases, the issue will be the price the house is listed at.
Real Estate
This may be the most reliable way to find out if a house is listed too high. Real estate agents are capable of looking and finding other details about the property than buyers themselves. Using the proper tools and information, they can find the accurate price for the house and how much it should sell for.
Having such knowledge of identifying an overpriced house can undoubtedly save you in the long run with buying a home.
If you have any questions about mortgages or identifying overpriced houses, please feel free to reach out!
Sherry Corbitt, Mortgage Broker
Sources
-Pearse, Angela (2018). 5 Ways to Spot and Overpriced House. Zolo. Retrieved from
https://www.zolo.ca/blog/how-to-spot-overpriced-house
-The Guide of Professional Estate Agents (2021). How to Spot an Overpriced House. Retrieved from
https://www.guildproperty.co.uk/news/post-how-to-spot-an-overpriced-house-1469696345
