Advice
4 signs that show a home is overpriced
22/04/2019 09:11 | Source: Vnexpress
There are some signs that can help you determine whether you are paying too much for the house you want to buy.

1. How long the home has been on the market?

If a home is on the market longer than average, it may be overpriced. Remember to ask your agent to pull statistics on the house you’re interested in. How long has it been listed? Is that longer than average for homes in the neighborhood? Has the house been on the market previously and the listing removed?

Terra Spino, who is an agent in Santa Maria, California, says to understand what’s average for the property you’re looking at is very important, and high-priced homes will sit on the market longer than less-expensive ones.

Home purchase experience

2. Valuation tools point in the wrong direction

Experienced agents who know the area can put a finer point on home values than online tools. Real estate expert Lavengood points out real estate is very market specific, therefor, what’s good for one neighborhood might not be good for another. Property values on websites are not always accurate.

3. The home is good, but the neighborhood not so much

Generally, land increases in value while homes depreciate over time. This means a brand new home in a so-so neighborhood might be worth less in a few years than a comparable older home in a nice neighborhood.

Before signing the sales contract, evaluate the features of the area where the prospective home is located. Consider growth opportunities, for example, new businesses and mixed-use developments. In addition, don’t ignore other features including nearby mass transit, high-rated schools, and amenities such as parks and popular public spaces, etc.

4. The inspection sets off warning bells

After your bid on a home is accepted, a home inspection will give you additional clues as to market value. Make sure that you will hire an inspector with experience who comes with excellent recommendations.

You need to be cognizant of potential inspection issues. Everything’s fixable, it’s just a matter of at what cost and whose cost. Be sure that you’re not getting into a situation where you can’t afford repairs and it impacts your ability to sell.