How to Identify an Overpriced Home

Posted by Gurpreet Ghatehora on Tuesday, March 17th, 2015 at 12:07pm.

Get online

Searching the market for the neighbourhood you’re interested in is a good idea. If you already have a home in the area in mind, you can use mls.ca to view other homes in the neighbourhood and compare the price points to what each property offers. If you can find a similar style of home for sale in the same neighbourhood at the same time, this will give you an idea of whether or not the price of the home you want is on par. Similarly, your realtor will also be doing this, but they will also back-check to see how much recently sold homes went for in the area – this is another great indicator.

Word of mouth

Talk to people you know in the neighbourhood. Many times home owners overvalue their properties for sentimental reasons, or for sheer numbers – without taking things like the economy, and the rest of the neighbourhood into consideration. If A home you are interested in seems too pricey, there may be a valid reason, or the home owners may just be over ambitious. You’d be surprised what you can find out from just asking friends or family in the area.

Research the location

If there doesn’t seem to be anything particularly special about a certain place, yet the price is higher than you’d expect, investigate. While a mediocre home could still fetch a good price if its in the right location, not every location is the right one. Finding out more about the general area is important. If there is a new school being built, a new highway coming nearby, or a brand new shopping centre planned – these could all impact a home’s price, and a neighbourhood’s value.

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