The real estate market is saturated with homes for sale, many of them at very low or foreclosure prices. This means that the market continues to be one that is perfect for buyers.
In spite of this, you may still come across a home that appears to be overpriced. When this happens, there are three things you need to consider before you simply walk away.
1. The homeowner (and their realtor) has not kept up with the comparable sales in the market. In some areas, prices have fallen very quickly and sellers may not realize their home is overpriced.
2. The homeowner is under water on their mortgage. Many homeowners owe more than their homes are worth. They may just be trying to get out of the home for what they owe.
3. The home has features that are hard to find. When a home has features that are very unique, the home may be worth more than others in its area. This doesn’t mean that the features are important to you, but they help justify the price.
If the home you’re looking at is over priced for one of these reasons, you may still be able to get a good deal, especially if the home has sat on the market for a while.
Start by looking at recent area sales. If comps for the area are more than you’re willing to pay, then this home, which is priced higher, is definitely not for you. But, if the recent sales in the area fall into your price range, you may be able to negotiate a good deal on an overpriced home.