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How To Spot an Overpriced Home

by Mark Rieger, Mark Rieger Realty

Whether you are selling your home or looking for a new home, knowing how to avoid an overpriced home is important.

In many cases, homeowners value their homes higher than what they’re worth because of sentimentality and emotional attachments.

 

However, overpricing a home is one of the biggest mistakes sellers can make, and buying an overpriced home is an even bigger mistake.

 

Here are 5 ways to identify an overpriced home.

 

  1. The home is priced much higher than neighboring properties. One of the first things real estate agents do before recommending a price to the seller is look at the sales prices of the last three sales of comparable sized homes in the neighborhood. Do a search to find out what neighboring homes are selling for, and make sure the home is priced accordingly.
  2. Look at the number of days the home has been on the market. If the home has a high number of days on the market, it may be an indication that the home is overpriced. Competitive bids indicate a reasonably priced home.
  3. The home is priced for customized, unique amenities. Tennis courts, badminton courts, wet bars, expensive pools, bowling alleys, and other amenities may have a lot of the appeal to the seller, but they don’t necessarily have a broad appeal. The price should reflect that point and not include many customized, personal amenities.
  4. The location does not add value to the home. It’s a real estate cliché that “location is everything.” However, location can affect the price of a home. If the house is located on a very busy street, is located in a generally low-income area, or the nearby schools don’t have high ratings, the price should reflect such.
  5. The home price is based on home improvements. There are a few improvements that can increase a home’s value. An updated kitchen, a newly installed bathroom, a deck, or other add-ons may warrant additional cost. However, minor home improvements and repairs do not. Make sure you are aware of any improvements, remodels, add-ons, etc. Verify that if the price of the home includes improvements, the improvements add actual value to the property.

If you need help properly pricing your home for sale, or if you are looking to Buy a new home in the central Oregon area and simply want to make sure you are paying a fair price, please let me know. I offer exclusive Buyers and Sellers representation and would be happy to help you! Give me a call today.

Choosing the Right Price for Your Home

by Mark Rieger, Mark Rieger Realty
 

Choosing the right price for your home is one of the most important aspects of selling your home. If your price is above market value, you run the risk of it sitting on the market too long.  

An overpriced property:

  • Minimizes the number of offers
  • Limits qualified buyers
  • Reduces the number of showings
  • Lowers prospects
  • Limits financing
  • Will attract buyers in a higher price range that have high expectations

 

Most buyers today are educated about the home buying process and have done their homework before purchasing a home. They will know if your home is overpriced. 

In choosing the right price for your home, the market is the most accurate indicator. The condition of the current market, the number of buyers, and current competition will dictate your home’s value. If your home does not meet the competition price, it simply will not Sell 

Keep in mind that the value of your property is not dictated by what you’ve invested in the property, what you paid for the property, or by the amount you feel you need to receive from the property. 

Choosing the right price for your home will increase advertising response, stimulate buyer interest, compensate for property shortfalls, and provide you with a negotiating advantage. If you are looking to either Sell or Buy a home in Central Oregon, please give me a call.

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