High Priced Properties
No one wants to pay too much for a house. It can be a frustrating prospect, it can make your payments higher, and could make appreciation less likely.
If home values fall too much, you could end up under water, which means owing more on your mortgage than your home is worth.
Fortunately, there are ways to spot an overpriced home. To ensure you don’t overpay, we’ll watch for these signs.
1. Days on Market (DOM)
If a home has a high number of days on the market, then it likely means that no one who toured it before you thought it was worth the price. This typically indicates a price point that’s too high, or there's something wrong with the home.
2. Listed Repeatedly
When a house is put on, and taken off the market several times, it often means one of two things: Either they're trying to reset the DOM, or it’s gone under contract multiple times, but the Buyers have pulled out.
3. Similar Properties
Unless a home has 'standout' or luxury features, it should be priced similarly to those around it. If its price is notably higher for no obvious reason, consider it overpriced.
4. Similar Properties Selling
If a home is priced appropriately for its area, size and condition, it should sell at relatively the same price and speed as neighbouring properties.
It’s true that sometimes a home is priced higher due to luxury amenities or other features. If that’s not the case and a home is just overpriced, there are strategies we can use to make the deal work in your favour.
Ready to start your home search? Get in touch today.
