Spotting overpriced homes

Searching for a home that’s right for you is a little overwhelming. There are so many different things to think of, and criteria that needs to be met. How is it possible to tell if you may be looking at an overpriced home? There are a few easy ways to find out!
The first thing you can do it to compare what other homes in the area are selling for. This can be done by researching what other neighborhood homes are being sold for and then compare this to the price of the house you are looking at.
Another key thing to look for is to see how many days this house has been on the market. Homes usually sell pretty fast, sometimes days or a week after going to market. If a house has been on the market for a long period of time, this can indicate that it is overpriced.
When looking at this certain home, make sure to look to see if the house is customized and has something unique in it. This may indicate why the price is higher. Some houses may have a tennis court, media room, pool, wet bar or even a bowling alley. This may not appeal to the general public, and may not sell well. Having such amenities also does not necessarily means the home needs to be significantly more expensive than other houses in the area. If you are unsure if the house is overpriced or not, make sure to ask your real estate agent!
Make sure to do your homework! You will want to research the current Real Estate Market, because the current economy has everything to do with the pricing of a home. If the economy is down, then a house can’t be priced as if the economy was doing well. Also, make sure to see if the job creation is moving people to the area you are looking for and what the employment rate is. Job creation and low unemployment indicate that the homes will be higher priced.
Pricing also is determined by the location of the house. If the house is on a main street, near a school or in a low income area this indicate a low price for the house.
Do some research on the house’s history too! If a home has been updated, remodeled, or upgraded then it will be priced higher. Newer appliances, remodeled bathrooms, additional decks will equal a higher valued home. If the case is the opposite, then the price should be lower.
By doing some simple research, you can ensure that the price you are looking at is a reasonable one, or an unreasonable one!


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