Does an asking price of a house look off? Too low? Too high??
As you’re scouring the internet for your future home, you might run into some listings where the asking price looks to be off. Perhaps it’s so low that it looks too good to be true. Other times, it’s so high that you’re left wondering if this one’s even worth considering. Either way, can you trust it?
If it looks too low:
Make sure you’re keeping track of some important clues:
Are they holding back offers?
Is there any wording alluding to a holdback of offers until a specific date and time? Look for wording such as “No conveyance of offers prior to [time] and [date]” or “Offers to be presented at [time] on [date]”. In a more active market, sellers and their agents will – at times – price their home lower than its anticipated market value (and thus most likely sale price) in hopes of generating as much buzz and interest as possible for their listing. This isn’t it, though;
What do comparable sales look like?
Take note of recently sold properties in the neighbourhood, and compare their sale prices to this home while taking into account any market changes. If most similar homes are selling for approx. $700,000-$750,000, and this one’s priced for $600,000 without looking like it’s worth $100k less (because of needed renos, specific location, lot size, etc.), expect the asking price to be no more than bait to lure you into placing an offer for the home.
If it looks too high:
For this one, you’ll simply need to have a look at comparable sales as instructed above. Make sure you’re not missing anything important – sometimes, pictures lie, and you’ll have to visit the home and take note of other factors which could justify its higher asking price. These could be:
- Lot size, rear yard size, etc.
- Specific location; is it better-insulated from a major, noisy roadway? – are there rear neighbours? – how private is the rear yard? – water access?
- Interior square footage of the home
- Quality of materials used during construction
- Building details; is it a poured concrete foundation? – what’s the building’s age?
- Attention to detail during construction
Either way, and even with some experience buying and selling a home under your belt, you’re likely to highly benefit from having an expert on your side. Hire someone who’s familiar with current market trends and the specific type of property you’re looking to purchase. Consultations are often free, and they’re certainly so with me. Reach out here, even if just for a short chat — I look forward to helping you.
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