In the ever-evolving world of real estate, staying ahead of trends is crucial. Overpriced homes may still linger on the market, but with the right knowledge, you can easily identify them. Let me guide you on how to spot inflated home prices, ensuring you get both the house you desire and a fair price.
1) Get Cozy with a Comparative Market Analysis (CMA)
A Comparative Market Analysis (CMA) is your secret weapon. It’s the most reliable way to determine a house’s fair market value. Crafted by a knowledgeable agent, a CMA compares recent sales of similar properties in your area, providing an accurate snapshot of current market prices. Remember, the keyword here is “currently.”
2) Check the Time on the Market
The length of time a property has spent on the market can be a telling sign. Homes priced correctly tend to generate interest and sell quickly. For context, the average days on the market for North Vancouver detached homes in August 2023 was 18. If a property has been lingering longer than that, it might be overpriced.
3) Appraisal vs. Listing Price
While you’ll reach this stage later in the buying process, the appraisal is critical for confirming a property’s value. If the appraisal comes in lower than the listed price, consider it a serious red flag that the home might be overpriced.
4) It’s What’s on the Inside That Counts
Take a close look at the property’s interior and exterior. Upgrades and renovations can significantly affect a home’s value. If the listing price doesn’t align with the condition of the property, it’s time to ask questions and dig deeper.
5) Avoid Emotional Pricing
Sellers can sometimes let their emotions influence pricing. This “emotional pricing” is based on both data and sentimental value. While it’s important to be compassionate, ensure you negotiate with your CMA in hand to avoid paying more than the property’s true value.
An experienced agent is your strongest ally in avoiding overpayment. To further equip yourself, grab our FREE guide, “Is It Worth It? Decoding Property Prices.” Want your copy? Call or email us and we’ll email the 9-page guide straight to you. Don’t let inflated home prices stand in the way of your dream home!