How to spot an overpriced home
Here’s 3 simple ways to identify an overpriced home.
The first way is to compare the home to the neighbourhood sales. If the homes are basically the same size and style generally neighbourhood values will be close and consistent. So if 2 homes just sold in the same area and both were roughly 1500 sq ft bungalows with 3 bedrooms and 2 bathrooms and one sold for $550,000, the other sold for $547,000 and the same type of home has been listed for $590,000 there’s a good chance it’s overpriced for the market.
The second way to tell if a home is overpriced is to see how long it has been listed for. If it’s been on the market for over 90 days and other homes in the same area have all been selling in under 60 days it’s pretty safe to assume that the price tag is too high.
The third way to identify an overpriced home is to see how much action it’s getting. If it’s being well marketed on every platform available and there’s been lots of showings and activity on the property but no one is bringing an offer, you guessed it, it’s overpriced!