Over the past few years, the US has been in an unprecedented sellers’ market. Fierce competition and bidding wars caused prices to skyrocket, with the national median price for a home currently sitting at $449,000.
But with recent economic changes and rising mortgage rates, it looks like this unprecedented seller’s market is (finally!) cooling off.
That being said, many sellers are still pricing their homes as if we were still in the peak of the sellers’ market. So, as a buyer, the question is—how can you tell if a home you’re considering is currently overpriced?
A recent article from realtor.com outlined key signs a home may be overpriced, including:
- The home has been sitting on the market. One of the biggest red flags that a home may be priced too high is that it’s been sitting on the market for an extended period of time. Homes in today’s market are still selling quickly—so if a home has been on the market for months without an accepted offer, it could be because the asking price is unrealistic.
- It’s priced higher than nearby comparable properties. A great way to gauge if a home is priced appropriately is to look at how much comparable homes have recently sold for. If nearby properties of a similar size and age of the home you’re considering have recently sold for a lower price, it’s a strong indicator the seller is listing the home at too high of a price point.
- Nearby homes are selling—but not this home. If nearby homes are flying off the market—and the home you’re considering isn’t? There’s something wrong—and it could be a too-high price tag.
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