Is there anyone interested in overpriced real estate? Or better yet, will you, as a buyer, be willing to pay an obvious, over-inflated price?
I bet you won’t give it even a single glance!
So, if you’re selling your home, you’ll need to understand that deciding on the correct price is absolutely critical, and it’s also the most common reason why a property doesn’t sell. The probability is that if you price your home too high, in the beginning, you will likely end up with less money in your pocket, which is obviously not the goal when selling a home.
How does one spot an overpriced home, you ask? There are many telltale signs to know if a home price isn’t meeting market expectations, but here are our nine surefire ways to spot an overpriced home.
Its price is well-above neighboring properties on the market
In most neighborhoods, home values, generally, are relatively consistent and close to one another. You’ll know if a house is overpriced if it’s at $100,000 higher than other homes for sale in that particular neighborhood.
Of course, there can be homes with a $100,000 value difference, although it’s almost rare. One way that real estate agents use to determine home value is by completing a comparative market analysis. A comparative market analysis, also known as a CMA, is a detailed analysis of sold homes in the past 6-month time period in a given neighborhood. If no CMA was done, it will create issues with bank appraisals AND cause overpricing.
A missed selection of real estate agent
The real estate market produces hundreds to thousands of real estate agents yearly. When interviewing prospective realtors to sell your property, it’s vital to ask questions relating to pricing. A home seller must understand how a real estate agent came up with the home’s listing price. If one real estate agent suggests a price that is $30,000 higher than the others, you’ll need to know how he came up with that number.
It’s easy for agents to “buy a listing” by suggesting a list price much higher than the market value, but if you make a mistake by hiring the real estate agent who suggested a much higher listing price, your home is likely overpriced.
Its online property listing isn’t getting any traffic
The world wide web has molded the real estate industry over the past ten years, and most home buyers are beginning to prefer doing their home search online. When buyers are interested in a property they see online, they will reach out to the listing agent or contact their real estate agent to schedule a private viewing.
If you are experiencing little to no internet traffic or property inquiries, your home is most likely overpriced. An experienced real estate professional who has a strong understanding of how to market homes for sale online should be able to provide traffic statistics and property inquiries.
Very few to no property showings
It’s common for sellers to feel excitement upon listing their home and having it advertised all over the internet. However, if weeks pass by and there are zero or only a few showings, excitement is replaced by concern and frustration. If you find this relatable, the likelihood that your home is overpriced is high.
If your home has been for sale for a few weeks and you’ve had only a couple of showings, you need to adjust the price to generate some activity and showings.
Not a single offer despite months of marketing
In most cases, a home with a just price should receive at least one offer within the first two to three weeks. If you haven’t received an offer after a couple of months, it may mean that your home is overpriced.
If your local real estate market is currently in the midst of a seller’s market, you should expect an offer on your home within the first couple of days on the market with the right price. While there are homes that may take longer than a couple of days or months to receive an offer, it is rare and typically exists when selling a luxury home or waterfront property.
“Low-ball” offers left and right
While it’s true that overpriced homes usually do not receive any offers, getting low-ball offers is possible. However, is it really fair to consider them low-ball if your listing is beyond the recommended market price?
If you’re selling your home and have received several offers that you would consider low-ball offers, you may need to reconsider whether your price is appropriate.
Open houses are DUDS
Statistically speaking, less than 2% of homes actually sell as a result of an open house. However, open houses allow potential buyers to look at homes without feeling the high pressure some real estate agents may place on them. If you decide that open houses are necessary to sell your home, and not one person walks through the door during the 2-hour open house, your price could be an issue. Remember, buyers will not waste their time if they feel a home is overpriced.
Receives only ONE common showing feedback
Every buyer a real estate agent manages to take through the property will most likely be asked for feedback about what they like, love, and dislike about your home. If the property is indeed an overpriced home, almost all visiting buyers are likely to point out how they can buy a bigger house for the same price a little further down the street. If that’s the case, you’re better off adjusting your price.
Neighboring properties for sale are ACTUALLY selling
If your home isn’t receiving any offers and your neighboring properties are getting sold left and right, take it as a sign that your house is priced too high. Many sellers fail to understand that many things can influence the sale of a home. A property’s style of residence, size, upgrades and amenities, and location are only a few factors. The bottom line is that if homes are selling in your neighborhood and yours is not, it’s probably overpriced.
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There are many telltale signs✅ to know if a home price isn’t meeting market expectations❌, but here are our 9⃣ surefire ways to spot🔍 an overpriced home.💲🏠
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