Homebuyers walk a fine line during the purchasing process. On one hand, you know the size and type of house you want, the neighborhood you want to live in, and the amenities you desire. On the other, you don’t want to spend more money than necessary, and you certainly don’t want to spend more than the home is worth. How can you know if you’re spending too much for a house? Here are some key indicators the property isn’t worth it.
It’s the Highest-Priced House on the Block
If the other homes in the neighborhood are priced quite a bit lower it could be a signal that the one you’re considering has an unrealistic price tag. Perhaps the seller isn’t serious about selling the home, or they are overly attached and have settled on the steep price based on emotions rather than what the market will bear.
It’s Languishing on the Market
When you look at the days the house has been on the market, is it a long time? Normally, good deals are snapped up quickly, sometimes within a few hours! Even reasonably priced properties are under contract within 60 days. If the home has been for sale for several months, it could be a sign that it’s overpriced and the seller may not be budging. In this scenario, it’s smart to look deeper into why the home may not be selling at a normal pace.
It’s Over-Improved
That $50,000 koi pond? The high-end chef’s kitchen? That super-fancy bathroom renovation? Yeah, the seller needs to realize he can’t recoup those expenditures. If the house you’re viewing has higher-end upgrades than expected based on the type of home, those could be the reason it’s overpriced. Sometimes homeowners fall into choosing amenities that are too high-end for the neighborhood to support, but they won’t give up on the idea of getting their investment back. Over-improvement can lead to over-the-top pricing.
Your Realtor Says It Is
Your working with a real estate agent for assistance, so count on his or her guidance when it comes to a home’s price. If your Realtor says the home you’ve fallen in love with is overpriced, believe it. After all, the Realtor is the one who is coaching you on negotiations, explaining PITI payment calculator, and finding you other people to work with, like helpful title companies. Trust him or her to tell you the truth about the pricing.
When you’re shopping for a home, it’s important to know that you’re getting your money’s worth. If you think the property is priced to high, talk to your Realtor about making a lower offer. You may be able to get the seller to negotiate. If not, this just may not be the house for you.
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