You have the cash, a good credit score and the desire to buy the house of your dreams.. But how do you know if the properties’ selling prices you are eyeing on are of actual fair market value?
For a first time buyer or for someone who simply don’t have a clue about the real estate market, you may easily fall prey for the idea of “The more expensive, the better”.
Some of us have the money to splurge or invest in properties, so overpricing may not matter to these individuals.
Well, if you are like me who values every dime I have from hard work & long hours then you would do your diligent research before sealing the deal for the supposed property or properties of your dreams.
Here Are 3 Tell Tale Signs That The Property Is Overpriced:
- Selling Price Is Higher Compared To Neighboring Properties
Do your research diligently by asking for the Neighborhood Profile. You may also research on your own by logging on your computer & Google everything about the property. If you prefer Yahoo or Bing, go ahead do so.. Kidding aside, you simply need to get as much information as you possibly can about the property.
If other properties within the area that offers the same lot area, provisions and selling price is more affordable, then chances are the property you are eyeing on is overpriced.
- In The Market For A While
Coupled with your property research, you need to identify if the property has been in the market for more than 3 months.
I’d say 3 months is long enough for someone to at least give an offer to the property. Find out if the seller received offers but chose to decline them or if it’s actually rotting in the market.
Either way identifying how long it has been in the real estate Market Listing, you would have an idea whether the selling price of the property is too high for the majority of the population.
- Location Doesn’t Correspond To The Selling Price
As the elites say it, “location is everything darling….”
Location value differs for every city or country. Let’s use Cebu as an example. I think you can tell by now that I live in the Majestic & booming city of Cebu, specifically in Mandaue City.
In a place where progress means high-rise residential buildings, business centers and malls, properties & cost of living in the city is definitely high.
I had the opportunity & the luck to purchase a condominium property near the mall, business district &, most important of all, near schools.
A busy bee like me would want all these amenities within my reach. For one, traffic is horrible in the city. This may not be Manila but we consider 15 minutes in the road to go to the nearest mall as far way to long.
Here are some of the things we can look at to identify if Location of the Property is well worth the Selling Price.
- Near the mall or supermarket
- Near the gym
- Near the school district
- Near the business centers
After reading this article, I hope you now have an idea on how to identify if the property is overpriced. Remember, “Expensive doesn’t equate to Value”. Happy house hunting!