How do you know if a home is overpriced? Great question!
Let's take a look at some of the factors that influence the cost of a home..
# 1. Get Cozy with a Comparative Market Analysis
Ready to dive into the exciting world of home pricing? A Comparative Market Analysis (CMA) is your secret weapon! A CMA, crafted by a savvy agent, does the detective work for you. It checks out recent sales of similar properties nearby to give you the inside scoop on what homes are currently selling for. Yep, we're talking current market magic! - Keyword here? Currently.
# 2. Check the Time on the Market
Time is of the essence, my friends! If a property has been chilling on the market for a while, it might be trying a bit too hard, indicating a potentially inflated price. The well-priced gems are the ones that catch everyone's eye and find new owners faster than you can say "home sweet home." - P.S. Did you know that in August 2023, the average time on the market in Boston was just 48 days?
# 3. Appraisal vs. Listing Price
Ever wondered about the behind-the-scenes drama of home buying? Well, here's a sneak peek: ''The appraisal'' It's like the final battle in your quest for the perfect home. You’ll be well into the buying process before the appraisal comes back, but it’s critical in confirming a property's value. But here's the plot twist: if it values are lower than the listing price, red flag!
#4. It’s what’s on the inside that counts
Time to channel your inner HGTV critic! Is the home rocking a brand-new kitchen? or is it like some serious '90s vibes? What's happening inside and outside can make or break a home's value! If things aren't adding up, it's time to put on your detective hat and ask some questions! - Interior and exterior upgrades can add or subtract from a home’s value.
#5. There’s no crying in pricing
Warning: Sometimes, sellers get attached to their homes, leading to “emotional pricing” - pricing based on data AND sentimental value. While it can happen to the best of us! You should remember to have compassion, but negotiate with your CMA in hand to avoid paying more than you should.
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