2. It’s Been On The Market For A Long Time
Another way to figure out if a home is possibly overpriced is to find out how long it’s been on the market. If you’re working with a real estate agent, they can help you determine how long a property has been listed. You can also find this number by looking on various websites, such as Rocket HomesSM, where you would check out real estate listings. While the number provided might not always be 100% accurate, it can often give you a good idea of whether a home has been on the market longer than most.
3. The List Price Doesn’t Align With The State Of The Home
It’s easy to see a home in a listing and assume that it’s a well taken care of and perfect home. But pictures can sometimes show only the good parts of a home – especially if the home has been professionally staged to look good in photos. This is why it’s incredibly important to tour a home before ever putting in an offer or moving forward with buying a house.
For example, you might find a home that has everything you’re looking for but when you tour the property in person, you start to see some things that don’t align with the asking price. Maybe you’re noticing small signs of water damage, broken tile or the home’s layout is misleading compared to how it looks in the pictures online. Consult with your real estate agent or REALTOR® if you have concerns about a home and want to know how the cost was calculated given the current state of the home.
4. The Price Doesn’t Match Your Calculations
Anytime you’re looking at a home, you can always calculate on your own what the price of the home should be. This can be done by using an automated valuation model (AVM) tool which can help potential home buyers determine the property value of a home. An AVM will use existing data to calculate the estimated value of a property. AVM tools can be found through various real estate listing websites.
You can also do your own rough math by averaging several home prices from similar properties in your area. If the price of the home you’re interested in isn’t anywhere near that average price then you might be looking at an overpriced house.
5. The Home Hasn’t Received Much Attention
If you’re a potential buyer and are working with a real estate agent, they should be able to tell you if there’s been any recent activity with the property. If your real estate agent informs you that there hasn’t been much activity on the property (pending sales, offers, etc.), it could be a sign that the home is overpriced. If a home isn’t selling over a long period of time, one of the first things people are going to assess is the price of the home.
