Real Estate Investments: Three Telltale Signs a Home is Overpriced

“Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.” –Warren Buffet

Price has undoubtedly been the most significant driving factor in successful sales—most particularly in real estate.

After all, as the saying goes: If the price is right, it sells overnight. If you price it wrong, it stays too long. In this regard, accurately pricing a home is a paramount consideration if home sellers wish to have the offers of prospective buyers come rolling in. As sellers would wish to make a quick sale at an exorbitant price, they can leverage the scenario into their favor by justifying hefty prices with last-minute cosmetic touches that are unnecessary. Unfortunately, some buyers who are not meticulous enough about their prospective purchases would be too enticed about the idea of finally owning a home that they would overlook the home’s overinflated price.

Indeed, while most sellers would almost always give you the best possible and reasonable price, some of them would try to see if there would be any interested parties willing to buy it at that price. In this regard, the brunt of responsibility in ensuring you are getting the best possible deal would be in your shoulders. Take note: Home sellers can be pretty creative when it comes closing a negotiation. With this in mind, do not let yourself be sidetracked by inconsequential details. Remember, just because a property is located in a lush suburb such as The Alcoves or elsewhere, does not necessarily mean the price can be inflated without justification. In any case, how would you know whether or not you are looking at an overpriced property? More importantly, what is your next move when you find out it is?

In any case, here are some of the signs that you are dealing with an overpriced home:

           1 .)    The home is priced well above neighboring properties for sale

A seller’s whose property is priced higher than its neighboring properties should raise red flags instead of spark intrigue. “...but you have not seen how it looks from the inside. Once you do, you’ll know why it is priced that way” is a common spiel among home sellers with overinflated price tags for their homes. If this is something you would hear, it might be that they are just trying their luck and are trying to determine if they can sell their homes at a much higher price than its neighboring and competing properties.  

           2.)    The real estate agent who gave the highest valuation was hired

An integral part of the home selling process is to select the best real estate agent. More often than not, the success or failure of your property selling endeavor is hinged on how well your real estate agent markets your homes. With this in mind, it is best to conduct a series of interviews as well as subject them to a list of prerequisite standards before making a selecting. If you hire the agent who gave you the highest valuation, chances are they are bolstering their chances in landing you as a client by stroking your ego. Instead, go for the agent who can give you a fair estimate and assessment of your home.

       3.)    The online listing is not getting any traffic

One excellent way to maximize your property’s exposure is to advertise it on social media. Apart from reaching a wider audience, it is also for free! Moreover, a huge fraction of modern home buyers would commence their search for a home online and in this regard, your real estate agent should at least have an idea how to market your property online or take advantage of social media. Seeing as most buyers would begin their search online, you can expect interested buyers to make inquiries within a matter of hours at the very least. However, if you are not hearing back for weeks and even months, then it might be that your listing has a problem—particularly its price. Chances are, people have already come across your online listing. It is just that they are not interested in buying it at the price you have offered.

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