There is no doubt that Denver continues to experience a hot real estate market. The ongoing migration of people and companies to the Mile High city has resulted in a tremendous demand for housing. This demand, coupled with our historically low inventory, has created a seller’s market. During this type of Sellers’ market, I often get the question from my buyers “how do I know if a house is overpriced?” Buying a home is a big investment and one that you don’t want to overpay for. When helping clients purchase a home, one my goals is always to help them get the best home at the best price. This month, I suggest four ways a buyer can spot an overpriced house even in a hot market.
Neighborhoods tend to have a range of sale prices. Homes in a neighborhood that are similar in amenities, updates, size, etc. will then fall within the neighborhood’s range. If you come across a home that is priced significantly higher than the neighborhood’s range, this is a good indication that the home is overpriced.
A tell-tale sign that a home’s list price is too high is that there have been no offers on the home despite significant marketing. As a buyer’s agent, I can provide you with insight on a listing’s history, particularly if an offer or offers have been made on a listing.
Days on Market (DOM)
Another signal that a home is overpriced is the length of time it has been on the market. A home’s time on market is definitely relative to market conditions. If, however, the homes in the neighborhood or market you are looking at are selling quickly, but the home you are looking at has been on well beyond the selling time of surrounding homes then it is likely that the list price is too high.
The best way to ensure that you don’t overpay for a home is to hire a real estate agent. A real estate agent will have access to market and listing information that isn’t publicly accessible such as offer history and sales data.
In a hot real estate market such as Denver’s, it is critical for a buyer to have the reliable information to make a home buying decision they can feel good about. As a Buyer’s Agent, I offer my clients a full market analysis and listing intelligence to help them make an informed home buying decision. Providing my Buyers with neighborhood sales comps (comparables), listing offer histories, and sharing a listing’s days on the market are a small part of my strategy to ensure my clients get the home of their dreams without overpaying for it. If you or someone you know is looking to purchase or sell a home – please get in touch with me. My number one priority is helping people achieve their real estate goals and I am always happy to answer any real estate questions.