Are you searching for a property? While you are scouring the market, at some point you will come across one that is overpriced. There is a possibility that it looks just like your dream home, so you are tempted to purchase it. However, Asaf Izhak Rubin recommends that you step back and analyze a couple of factors. Sometimes there are specific signs that indicate that you have come across an overpriced home, but some of them can also be quite subtle. You need to consider the pricing ofa home carefully before you decide to view the house.
After all, it doesn’t make sense for you to get attached to a home that is essentially overpriced. But, you need to be aware of the signs in order to do so and Asaf Izhak Rubin has shared some of them below:
- The price is higher as compared to neighboring houses
The first thing you need to check is the price of the home as compared to that of surrounding homes on sale. Asaf Izhak Rubin recommends that you also check the previous and current listings to get an idea of the neighborhood range. You should also take a look at the homes recently sold in the area. While the sizes of the homes may be different, you should be able to compare prices. Bear in mind that the key factor is to evaluate the price range of the area. Just because a house is larger does not mean that it will be worth more.
- The price does not suit the neighborhood
The next step is to assess whether the price is in accordance with the neighborhood. Every real estate expert including Asaf Izhak Rubin will tell you that location is a major factor when it comes to home pricing. Therefore, it is a given that a home in a desirable area will have a higher price. Homes located in crowded, busy areas with fewer services will carry a lower price as opposed to those in well-serviced and quieter areas. You should have a good understanding of the neighborhood before you invest in a home. This will help you assess if the house really has a fair price or not.
- It has been on sale for too long
Another indication of an overpriced home is the duration for which it has been on the market. Even though there may be some other reasons why a home has been on the market for too long, in most cases it is because the property is overpriced. According to experts like Asaf Izhak Rubin, fairly priced homes are usually sold in a couple of weeks, or even days. Thus, if you come across a property that has been on the market for more than a few weeks, there is a strong possibility that it is overpriced. But, you should also remember that high-end properties don’t sell that quickly and this should be factored into your decision.
- The home has been upgraded excessively
When amenities are added to the house, it is natural for the owners to ask for a higher price for it. But, the key here is to determine if these upgraded are even needed or not. Even if a remodeled kitchen is tempting, it could mean that the house is over your budget. Asaf Izhak Rubin recommends that you talk to the seller and ask them about the changes they have made to the home in order to determine if they add value, or the home is overpriced. Bear in mind that not all home improvement projects will add any value.
Along with these factors, Asaf Izhak Rubin says that the overall condition of the home can also contribute to its overpricing. It is best to get the house inspected thoroughly by experts in order to evaluate the price. Find someone trustworthy to do the evaluation, so you can get value for money.