How Much Is Too Much?
Whether you are buying or selling, the matter of price and worth is always a concern for both parties involved. Is it overpriced? Is it underpriced? Is it not selling because of the market? There are many things to factor in when determining if a home is overpriced, so here are some signs to look out for:
- The first tell-tale sign that a home is overpriced is looking to see if it is priced much higher than neighboring listings in that area.
- If the home has been on the market for over a year, chances are it is priced too high.
- If the online listing and open houses are not directing any traffic or offers.
- Only low-ball offers are being made.
- The “over eager” agent was chosen for the listing (make sure to interview a few before deciding on an agent)
- If it is a seller’s market and the home is still on the market after a month.
- If other homes in the same area are selling.
- Strange amenities were considered in the price. If you are not dealing with high end listings, high end amenities will not sell a home. Dress a pig in pearls, it is still a pig.
- If investors are the only one’s offering, chances are it is priced too high.
It is important to choose a realtor who is going to price the home fairly and take in consideration all factors---not just commission. If you interview a few realtors, do not immediately choose the one who gave you the “optimistic” price. If you are buying, ask your realtor some of these questions to see if they think the home is overpriced, and see what kind of offer the seller might be willing to compromise on.