How Do You Know if a Home Is Overpriced?

Dated: September 3 2023

Views: 84

🏡Overpriced home prices are so last year. Like every trend, though, you can easily find a handful still hanging out on the market — but only if you know what to look for.

Let me show you how I spot inflated home prices for my buyers so that you can feel great about the house you’re getting and the price you’re paying. 👇

1) Get cozy with a Comparative Market Analysis (CMA).

A CMA is THE best way to determine a house's fair market value. Put together by a knowledgeable agent, it’ll compare recent sales of similar properties nearby to paint a picture of what homes are currently selling for. Keyword here? Currently.

2) Check the time on the market.

A property that’s been sitting on the market for a while may indicate an inflated price. Well-priced ones attract interest — and sell — quickly. (FYI: the average days on market in June 2023 was 44.)

3) Appraisal vs. listing price.

You’ll be well into the buying process before the appraisal comes back, but it’s critical in confirming a property's value. If the appraisal comes in lower than the listed price, it's a serious red flag.

4) It’s what’s on the inside that counts.

Does the home boast a shiny, new kitchen, or is it stuck in the 90s? Interior and exterior upgrades can add or subtract from a home’s value. If things don’t add up, it’s time to ask some questions.

5) There’s no crying in pricing (or, at least, there shouldn't be).

Sometimes, sellers get attached to their homes, leading to “emotional pricing” - pricing based on data AND sentimental value. Have compassion, but negotiate with your CMA in hand to avoid paying more than you should.📱

Blog author image

Larisa Lazarev

Meet Larisa LazarevWith over two decades of calling Colorado home, Larisa Lazarev has not only fallen in love with the breathtaking landscapes but has also immersed themselves in the vibrant real esta....

Latest Blog Posts

POV: Your home wishlist becomes your new reality

💭🏡Your dream home can absolutely become your reality... but there’s a catch.What you jot down on your dream home wishlist might not always match up with what you end up with. And guess

Read More

The best season to sell a home???

🏡Hot take: The best time to sell a home isn’t spring...There I said it! It’s not when prices are high, rates are low, or when your partner, your mom, your best friend, or the guy

Read More

A homeowner's net worth is 40 times greater than that of a renter......

😮This stat rocked me… According to the Federal Reserve, a homeowner's net worth is a staggering 40 times greater than that of a renter.Let's also acknowledge:👇Conditions have NOT been

Read More

Make sure your realtor doesn’t skip this

✨It happens time and time again... A human emerges from their corner of the internet interested in a listing I’ve just shared about.This type of wide visibility is just ONE reason social

Read More