One reason a house doesn’t sell it’s because it has been overpriced. Most homes that are evidently overpriced often have very little chance of being sold. Competitively priced homes generate a lot of traffic from the potential buyers and sell faster. With the rapidly moving real estate market a home ought to sell very quickly. If you are selling your home also, it is very critical to correctly value your house for better returns. The following points can help you determine whether your home is overpriced or help you to avoid buying a home that has significantly been overpriced.
- Compare with other house prices in the neighborhood
Research and compare the neighborhood house price in order to correctly gauge if you house or house you want to buy has been accordingly priced. You should look at the recently listed and sold houses in order to have a realistic observation of the local market prices. If the houses in the neighborhood have similar features or are closely comparable, then the prices should be closed related.
- Its Location
The location of a house is one of the most important factors that should be considered when selling or buying a house in the real estate market today. A neighborhood can increase the worth of a home or make it of less worth. The more desirable a location is, the higher the value of the home. Below are some features that can make a home worth more or less.
- Does the neighborhood have highly rated schools?
- Does it have good access to public transportation?
- Does the neighborhood have shopping centers, how far are they located?
- What are the entertainment programs available in the neighborhood?
- Identify for how long the house has been in the market
In the real estate market today, houses are selling out very quickly, generally within few days or weeks. If a house has been in the market for a generally longer time, then it is most certainly that it is overpriced. Competitive bids usually indicate that the house has been competitively priced. It is important to consult a real estate agent for further information regarding such a home.
- Identify if the house has any unique amenities
Identify if the house on sale has any special facilities that can translate to a higher value. Usually, a house located in a luxurious estate that with prestigious gardens, an expensive pool or a tennis court among others have a higher value than just a structured house without these facilities. The more luxuries a house is the more the price.
- The condition of the house
A more renovated home will boost the current listing of a home. Most home owners today have drastically upgraded their homes to attract more offers and in return more sales. New kitchens, newly installed bathrooms decks and other updates attribute to a higher value of any property. Homes with outdated features like old paints, poorly installed floors, rotted fences and most appliances need repairs should cost low and buyers will most likely be reluctant to buy the home. Such a home is overpriced if it has the same listing price for improved homes.
- Online traffic and offers are very low
The real estate market is currently conducting most of the selling and buying activities online. If a home has been correctly listed and it’s being advertised through the internet then, it should attract a lot of bids within few days. If it has been overpriced it most likely that it gets little feedback or none at all.
Generally, most home owners overprice their home when they expect that the potential buyers will bid low. They give a room for negotiations and offer which is likely to attract buyers and at the end get a fair price.