Buying
How to spot an overpriced property
Posted on: Monday, July 1, 2024
You may have found an ideal property, and you can feel yourself falling for it but there is a niggling question at the back of your mind, and you ask yourself - Is this property priced correctly? Sometimes, it’s hard to know where to start. Exploring these questions may help you find the answer.
Has the property been on the market for long?
If a property has been on the market for a long time, it could be a sign that the property is overpriced. To check this, you can also take a look online and find out when the property was listed. It can take one or two months to sell a property so there is no need to be alarmed if you see a home listed for a little longer than this. Properties are unique and the speed at which they sell depends on many factors.
How does it compare to other properties in the area?
Today, thanks to instant valuation tools and lots of online sources to check the value of similar properties and sold prices, you can quickly get an idea of what a property is worth. Take a look at what other properties in the area are selling for and consider the condition of each property.
Does the property need money spending on it?
Properties that need money spending on them will have more potential to add value. The vendor will realise this but it’s important to understand the true costs of making the required improvements. Costs can escalate quickly and sometimes a seller will not fully appreciate this and, as a result, set their asking price too high.
Where is the property located?
Location is as important as the property itself and properties in desirable locations tend to sell quickly. Local market knowledge is key to understanding this. Properties in good neighbourhoods, in beautiful locations, and in up-and-coming areas will fetch better prices. Although the latter is something to watch closely, you may be able to make a shrewd move for a little less by buying in an area that is on the up. Properties for sale in less desirable parts of town should be priced accordingly.
What’s happening in your local market?
Talking to your local agent, having a look online at local data and getting to know an area will all help you discover the right price. Moving involves making a lot of big decisions, and you don’t want to overpay for a property when you could use the money to decorate it. Getting a feel for the area by walking and talking and perhaps having a drink in the local pub is always worthwhile. Ultimately, if you have found the right place, the positive consequences for your life can be immeasurable.
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