Looking Twice at Overpriced Homes

If you are a homeowner, and you cannot afford to sell your home in a competitive market, then there is something wrong. It may not be the location of your house or the condition it has because there are home buying companies that buy homes in whatever condition they are. Therefore if your home is decent and is not attracting buyers when you place it on the market, then the main reason is the price. It is common that houses that are overpriced will take long or even never sell at all. No buyer will make an offer on overpriced homes.

Why home buyers overpriced houses

• Buyers do not want to make the seller angry; they fear to offer a price that looks relatively low to the vendor as it may be an embarrassment to the buyer.
• Buyers believe that the seller is aware that the house is overpriced and if he or she is willing to sell for a lower price, then the seller will be ready lower the price.
• The buyer has a feeling that the seller might have rejected other low price buyers, then a buyer will not want to meet the same fate. However, in some cases, it is possible to find that no one has made any offer at all.

How to find an overpriced home

An easy way to identify an overpriced home is by asking your realtor the average duration that homes on sale last on the market in that are or days on market (DOM) as it is known in the real estate circles. Getting this information is quite easy due to the existence of multiple listing systems which has all the facts about listed homes. Let your dealer go through the listing and give you the homes that have been on the market for longer than average time.
Additionally, you can as well ask your realtor to show you the homes that he or she thinks that are overpriced.

Reason for seller to lower price

In case the seller places the house on the market, and it stays there for long without receiving offers from the buyers, often the seller will lower the price. Another reason is that if a single customer has come out and negotiated with the seller to bring the price down, then it is evident that if the purchaser had the interest of selling the home, they would have to lower the price so as to accommodate the buyer. Provided that you are a seller and your home has been on the market for some time, then you only have one offer from the purchaser, then you will have to consider the buyer’s price. It is also likely that the listing agent had no idea that the house was overpriced. You can point this out to the seller, and you never know they can change their mind and lower the price. Therefore, if you are a buyer, it is good to try and see if a seller will agree to lower the price to one that will suit your budget. Surely, it will not hurt to try.

Other tactics that you can use to persuade the seller to lower the price is by paying a sizable deposit to prove to the seller that indeed you are serious and you are committed to the issue. Another thing you can do is to show the seller the similar houses in the neighborhood that have sold for lower prices than the seller’s asking price.

Certainly, not all overpriced homes will end up being sold at lower prices than the market price. Many homes that are listed with high prices are owned by sellers who are ready to listen to your reasons as to why they should sell their homes to you at a reduced price. In case a seller has rejected some offers from the buyers, then know that is just a matter of time, it will reach a point when they will accept the offer. Therefore, as a home buyer, if you see a home that is overpriced, do not pass by, you can miss an opportunity to own your dream home, just go ahead and negotiate with the seller.

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