Overpriced Homes

The housing marking is crazy right now, and that’s a great thing. Homes are up 19% and now is not only the time to sell and also the time to buy. But how do you know when the house you saw listed is overpriced? Here are some red flags:

The house is priced higher than others recently sold in the area?
If you are looking for a 3 bedroom 2 bathroom house and other 3 bedroom 2 bathroom houses in the area have sold for significantly less in the same area in similar condition, you can rest assured that the home you are looking at is overpriced. Comparing houses to others in the area is the best way to determine what the cost should approximately be.

The price of the home doesn’t match the neighborhood?
Location is everything. If the area you are looking at has busy streets, schools with poor ratings, and limited amenities, the area is considered less desirable. A more desirable area will have highly regarded schools, higher income, amenities within walking distance and public transit nearby. These attributes push the property value up. If the property cost doesn’t match the area, it’s likely that the home is overpriced (or in some rare cases underpriced which is also a red flag).

It has been on the market for weeks or longer
?Homes do not sit not the market for long when they are accurately priced, especially in a market like Grand Rapids. If the house you are looking at has been sitting on the market for weeks or months, it is likely that the home is either overpriced or that the seller isn’t that sure about wanting to sell – either way, RED FLAG.

There are extensive upgrades?
If there are multiple upgrades used as a selling tactic to drive the price up, consider whether or not they are worth the cost and additionally whether or not the upgrades are reasonable. If the previous owner put in a basketball court, this may not be a huge selling point for you, whereas new appliances may have been more important.

It isn’t being viewed often
?A hot house on the market has a lot of traffic with multiple viewings and many open houses. If the house has hardly any viewings and no open houses, it’s possible it’s overpriced and not getting much interest.

We at The Blehm Group have a trained eye for such red flags. We are here to guide you through the house hunting process so you can avoid frustration and wasted time. Give any of our wonderful agents a call to help you find your next home!