For many homebuyers, particularly first timers, buying a home can be quite a challenge.
While the selection of homes that might fit your criteria can be overwhelming, a second challenge might be the difficulty in pointing out which homes represent good value for your money and which ones are priced well above their actual value.
How to tell if a home is overpriced? Here are a few red flags:
- If the home is priced higher than other recently sold properties in the area
The value of a home is partially dependent on the price of other homes in the neighborhood. Checking out recently sold homes in the area will give you an idea of comparable property prices. Just because you’re considering a luxury home in the middle of a modest neighborhood doesn’t necessarily mean that the home is worth significantly more. In fact, the area the property is in can bring its value down.
- If the home has been in the market for weeks
Many homes are typically sold within weeks or even days after being listed. When a home sits unsold for weeks on end, it usually means just one of two things – the vendor is not 100% committed to making a move, or the home is overpriced.
- If the number and frequency of viewings or open houses are few and far between
A home for sale will usually have a succession of open houses arranged by a real estate agent. If the home has not had a scheduled viewing for quite a while, or if open houses are few and far between, it could be a sign that the home is overpriced, with buyers in that area deciding that the home is not worth their attention.
- If the property has had extensive upgrades or customization
A seller usually mentions the new kitchens, remodeled bathrooms, add-on decks, swimming pools, and other improvements in their home in a bid to sell quickly – or jack up the list price. As a homebuyer, you’ll have to ask yourself if you actually need these upgrades and if they add value to you as a prospective homeowner.
- If the price of the home doesn’t match the neighborhood it’s in
If “location is everything” when it comes to real estate, then it follows that the more desirable the neighborhood, the higher the property prices. Busy streets, poorly-rated schools, low-income demographic areas, and limited amenities can bring down the value of a home. If you don’t mind moving into this kind of neighborhood, then the price of your home should be a lot lower than if you were buying the same kind of property in a quieter and better-heeled part of town. Otherwise, cue the red flag!
Identifying Overpriced Homes
If you want to get your money’s worth when it comes to real estate in New York’s Westchester County, contact our team today and we’ll be more than happy to help you.