4 Signs You’re Offering Too Much for that House

When it comes to buying a house, there is no shortage of advice on what you should and shouldn’t do. It is without a doubt hard to determine whether or not you’re getting a good deal when you’re a first-time buyer since you could be getting ripped off without even having the slightest idea until a few years have passed by. Added to that, buyers that have been ripped off will tell you that the information you require can be acquired online without the need of a real estate agency, or a real estate agent. However, if you’re unsure about whether or not you’re offering too much then here are four signs you might be offering the wrong amount:

Idle Property Within an Active Market

An obvious sign if you’re being overcharged for a property is if it has been sitting idle in an active real estate market. Mostly the undesirable rates are tied to various other factors, such as an unfavorable neighborhood, or the lack of basic amenities in the area, leading to the property’s subsequent abandonment by investors. Though an uncommon scenario given the market’s current conditions, this is something worth keeping in mind.

Your real estate agent in such conditions is your most reliable source of information, therefore asking them to pull up the statistics is a good option. This can help you determine for how long the property has been listed, and if that time period is longer than average for properties located in the area. Another important question you need to ask is if the price range matches the type of house you’re being offered.

Selling Price is Higher than the one Advertised

The sellers are asking for more money than they paid for the house, or are trying to sell it for less than what they had paid for it. Paying less might seem like a solid deal for you, but it could actually be a sign of trouble ahead. This means that the owner acknowledges that the house is worth much less than it was when they bought it, which could be due to multiple reasons, but none of the reasons are worth taking a risk when such a huge sum of money is involved. This often acts as a common tactic for the seller to rip off a new buyer since visibly the house might seem flawless, however, hidden defects might be spread out throughout the property.

The Property is Perfect, but the Neighborhood is Far From it

Generally, over time factors such as the natural elements have an effect of wear and tear upon the property, however, the land remains relatively unscathed. This is why a brand-new house built upon a mediocre piece of land will be subjected to a rapid deterioration in rates. On the other hand, an old house built in a great neighborhood will be worth a lot more than its original price over time. 

Judge a house before opting to buy it by looking at the growth opportunities in the area. It is easy to conclude if an area is blooming with development or is rapidly going downhill by taking a closer look at the local businesses. Apart from that, keep an eye out for features including, mass transit, high-rated schools, and amenities such as parks and popular public places.

AVMs Point in the Wrong Direction

Online valuation tools also known as automated valuation models are easy ways for buyers to get an idea of how much a property is worth. These tools paint an estimate with the help of information gathered through past property transfers, taxes, and past sales. It is noteworthy that the amount produced is only an estimate and cannot paint an accurate picture of the price, and only experienced agents can give you accurate figures.

Honorable Mention

Without a doubt, leaving out your gut feeling from this list seems a little disrespectful, which is why its inclusion in this list is worth mentioning.

If your bid has been accepted, a home inspection is soon to follow which will provide you with all the additional clues you require to determine whether or not you’re being ripped off. Hiring an inspector is also a good option since certain defects might not be visible to the common eye however a professional might be able to easily identify factors you’d miss out on.