House hunting can be very confusing to a buyer. It can be difficult keeping up with current property prices. How do you feel when you see a home you like, priced at what you think could be reasonable, only to see a neighboring home on the market for a much lower figure?
How do you know if the property you like is a bargain or not? How do you know if you’re paying too much? And how do you understand the difference between, “priced for a quick sale” and “priced to sell”?
Most times property prices are calculated on a price per square metre basis. Although it is safe to say there are a lot of agents that don’t know what the current price is per square metre in the area they are selling. They estimate the price of a home comparing it to what has sold, what is currently on the market for sale and what the offers have been coming in at.
If you see a property with a higher than average asking price, it may be they have inflated the amount to compensate for any offers. It will look like they are overpriced. The problem with this is, research shows people don’t make offers on overpriced homes.
When you see a home that is “priced for a quick sale,” this means that the owners have lowered the asking price below market value to encourage a faster sale.
Properties with the tag line “priced to sell” means you are dealing with serious and motivated sellers. They’re not overpricing their home to compensate for cheeky offers. They know what the current market value is, and have chosen to hit the market just below other similar properties that are comparable to theirs.
Just because the asking price of a home for sale may not have been reduced doesn’t mean it’s not a bargain, that you could be paying too much, or it’s ready to accept a cheeky offer. The best way to know you’re not overpaying for a home is by asking your Real Estate Agent to show you comparable properties in the same price range.
If you’re ready to buy head to www.QuesadaDeals.com for a list of the best area deals.
