In real estate, the urge to sell properties at high prices is real. On top of the market value, sellers often factor in the sentimental value of their home, resulting in an unrealistic asking price that turns buyers off – and leaves the property languishing unsold.
Aside from the sticker price, there are other indications that a house may not be worth the money it’s asking for. Here are a few:
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You risk being house poor
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The home is on and off the market
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It’s a starter home priced like a forever home
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Houses in the neighborhood are selling fast – except for the property you’re eyeing
When assessing a home for sale, factor in the cost of repairs (unless the seller has agreed to fix things following the results of a home inspection), a possible renovation, and all the other expenses associated with homeownership (mortgage payments, taxes, maintenance, insurance, and so on). If the math leaves you with barely enough to scrape by, then you risk being house poor. That means spending more than you can afford on a house.
Even if the home is competitively priced, your financial capacity may simply leave you out of the running.
Therefore, look for a house that you can comfortably afford. Homes for sale in San Diego come in a wide range of prices. So set your sights elsewhere.
If a home has been listed on and off for a couple of months now, something must be going on. Sometimes, sellers list their homes for around 30 days. If there are no takers, then they’ll take it off the market. The listing will then reappear at a slightly lower price.
You can take advantage of the reduced price as long as the property itself is on the up and up. Consult your real estate agent to make sure.
Homes are investments, spaces you hope to continue to inhabit in the near future and perhaps, even longer than that. Thus, as you grow your family, or your needs change, you will want the option to extend the house. Build more rooms. Expand your outdoor space.
Especially if you’re buying a forever home, paying for a piece of property that feels like a starter home (no room to grow or expand) is definitely overpriced in any book. Ask your real estate agent to look for other options.
If houses in the neighborhood you’re interested in are selling fast, rethink the property that stays unsold on the market. There are many reasons for this – location, condition, contract, upgrades, and so on. But the common reason may also be the simplest: the home is probably overpriced.
Even if the market is tight, an experienced real estate agent can find you other homes for sale in San Diego that you won’t overpay for.
If you’re interested in moving houses or relocating to North San Diego, work with Jacobo Realty Group. They’ll show you the best property listings of single-family homes, townhouses, beachfront houses, condominiums, and so much more. Call us today at 760.632.8900 or contact us here.