The Price is Right? Or Not. 4 Ways to Know if a Home is Overpriced
When selling your home, it is very important to price it at market value to avoid a long listing and to ensure you receive top dollar. For buyers, a home is most likely the biggest purchase of your life and you definitely don't want to be overpaying!
4 ways to know if a home is priced reasonably:
Price your home based on other homes of similar size, with similar details, in similar shape, and in the same neighbourhood and city. When a REALTOR® gives you a price range, it is the value of your home based on comparables in the area that have sold.
2. Days on the market
Your REALTOR® can tell you how many days a home has been listed. Every neighbourhood and style of home has an average “days on the market.” One sign a home is overpriced is if it has been on the market twice as long as a home of similar character in the same neighbourhood. Price is likely the culprit!
3. Home is not updated or well-kept
If two homes both built in the 80s in a very desirable area, and one has had the windows replaced, kitchen and bath updated, exterior updated, and the other home is “au natural,” then these homes should NOT be priced the same. Some sellers may believe that “au natural” adds charm and some buyers may agree, but a vast majority of buyers are going to go for the updated home. The simple fact that work and money were put in for updates makes the value of that home higher!
4. Low offers
As a seller, receiving multiple low offers is a clear sign your home is overpriced and it's time to start thinking about a reduction. As a buyer, you can ask the seller’s REALTOR® for information regarding previous offers, but don't hold your breath because this does not have to be disclosed.
Think twice when pricing your property, as price can determine how fast your house will sell. Happy buying and selling!