Thursday, 1 November 2018

How To Tell If A House Is Over Priced


When you are looking for a new home you will have a budget to work with. When I have been looking at houses I have often been tempted to keep stretching that budget as I see properties just outside the price I can afford , but are they really are worth that much? Before deciding to pay that little bit more than you planned you should make sure the house is really worth that much, but how do you tell? There are signs you can watch out for that will indicate that too much is being asked for, some of which you can check out before you view.

The property of your dreams may be overpriced. Photo of a large house
Source

Look At The House Prices Nearby


If you put an area into the search part of the property site you are looking at, any properties for sale will come up. You can easily compare the other ones for sale in this way and see if the one you are considering seems to be a higher price than the others. Of course, there will be differences that account for slight price fluctuations, but 2 3-bed semis in the same area should not have prices that are too far apart. You can also find information online about how much other houses on the road sold for and when.

A Lack Of Viewings


If you are viewing a home through an agent, ask how many viewings there have been. If you are looking at it on a website you can sometimes see the amount of interest it has generated.  A lack of people viewing it could well be a sign that a property is overpriced, but this might also be an opportunity to put in a lower offer as the sellers may be keen to sell.

How Long Has It Been For Sale?


If a house has been on the market for a long time it may mean it is overpriced or there is something wrong with it. A survey is a necessary part of buying the house and will confirm if there are any problems with it. You can find out everything you need to know about homebuyer surveys. If there is something wrong, or it is just overpriced, you may be able to negotiate a better deal with the seller. It could also have been on the market for a long time because a previous buyer dropped out, it is worth asking the Estate Agent if they know the reason as that might identify potential problems.

Doing DIY and Home Improvements To Improve A Property Value


Home Improvements


Some people spend a fortune on home improvements. They may add a conservatory or new kitchen for example and they expect to get the money back they have spent. Home improvements might make the house easier to sell but no one should ever expect to get back all they have invested in the property. If the house you are looking at has been improved you need to remember that not all home improvements add value and don’t pay for things you do not need to.

The House Condition


The condition of the house matters a lot. Someone could have kept it in really good condition so they think it is worth more, or it could be in a bad condition and the asking price does not reflect that.

Sometimes the asking price of a house is dictated by the strength of the housing market and what is available in your area. When I was looking to buy there were very few 3 bedroom houses available in the area we were interested in, however there were lots of potential buyers. It meant the sellers could price the properties higher and they still got a number of offers very quickly. We were tempted to make an offer over the asking price for the house we liked because we didn’t want to risk losing out. Sometimes you might need to pay more than a property is worth because of the urgency you need to buy and what is available on the market.

Most houses are on sale through an agent who will give guidance to the seller on the price. Ultimately it is the seller’s decision how much the house should be marketed for though, and some of them just ask too much. Never be afraid to ask for a second opinion on the value to prevent yourself from paying more than you need to, even if it is your dream home.

When you have had an offer accepted on a house you might find it helpful to read how to make moving day less stressful. 


***Disclosure: This is a collaborative post***

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