by Rick Delgado
on Monday, September 22nd, 2014 at 7:39am.
Selling a home is no small task. Many homesellers make the common mistake of overpricing their homes. The reasons may vary from sentimental attachment to strategy, but the result is the same: interest is lost in the listing. For this reason, you should always make sure you’re setting a fair price for your home. As a buyer, there are numerous ways to spot an over priced house. Here are just a few questions to ask yourself whether you're placing an offer or putting a house on the market.
How Many Days Was it on the Market?
If the home has been on the market for quite a long time, much longer than some of the other homes - it may be because it is overpriced. If the homes within the same price range have been there for between 30-60 days, yet this home is in the fifth month - it is probably one of the more overpriced homes out there. Additionally, if it is being shown but not getting offers - the price just might be too high.
Prices Throughout the Neighborhood
Some neighborhoods do not have the exact same homes on the street, so comparing one against another might be hard to do. However, when a price of a home is considerably higher than the others in the area that are of similar nature, the home may be overpriced.
How are the Offers?
If there has been offers coming in on the home, but they have all been considerably under the asking price. This may be due to the price of the home being over priced.
If the home is more expensive, and has expensive upgrades inside such as a new kitchen then the owners may be requesting the amount to recoup what they spent on the remodel. Just because these items have been upgraded - doesn’t mean the price of the home should go way up. It all depends on the other homes within the neighborhood. If it is a smaller starter home, within a normal suburb community and has a jet tub and high end luxury kitchen - it is not going to fit in with the rest of the homes on the street. Therefore, it is not worth the extra money.
What is the Assessed Value of the Home?
Sometimes the tax value of the home has little to do with the price of the home, some homes that are priced too high compared to the assessment could be at an overpriced amount. A lot of times this is more true for those homes that do not have upgrades. If nothing has changed in the neighborhood or on the home, the assessment might be more than the value.
What Does Your Realtor Think?
Any good Realtor is going to know when a home might be overpriced, or when you’re getting a great deal. They should be the ones that advise their clients away from a home if the owners are asking too much for it.