How Do I Know If a Home Is Overpriced?

The List Price Isn't Necessarily the Market Value

One of the most important things I tell buyers is that a home's asking price is just that: an asking price. It doesn't automatically mean the home is worth that amount.

A seller can list a property at any price they choose. The real question is whether recent sales and the current market support it.

Look at Comparable Sales

One of the best ways to evaluate a home's value is by looking at comparable properties that have recently sold.

I look at homes with similar location, size, age, condition, lot size, features, and overall appeal. In Kitsap County, things like waterfront, acreage, views, garages, septic versus sewer, updates, and even the specific neighborhood can create significant differences in value.

The closest house isn't always the best comparable.

Look at the Current Competition Too

Sold properties tell us what buyers have been willing to pay, but active listings tell us what a buyer can choose from today.

If several similar homes are available for less money, the property you're considering may have trouble supporting its asking price unless it offers something the others don't.

I like to look at both the comps and the competition when helping a buyer determine what a home is worth.

Days on Market Can Tell You Something

A home that has been sitting on the market longer than similar properties may be overpriced, but days on market alone doesn't tell the whole story.

Condition, marketing, accessibility, timing, and unusual property features can all affect how quickly a home sells.

Price reductions can also provide clues about how the market has responded to the property.

What About the Appraisal?

If you're financing the purchase, your lender will typically order an appraisal. The appraiser provides an independent opinion of value for lending purposes.

But I don't recommend relying on the appraisal to determine whether you're comfortable with your offer. Ideally, we've already analyzed the property's value before you write it.

Price and Value Aren't Always the Same Thing

Some homes are difficult to compare, especially waterfront properties, acreage, custom homes, or properties with unique views and features. In those cases, value isn't always as simple as price per square foot.

As a Kitsap County real estate agent, I help buyers look at recent sales, current competition, property condition, location, market activity, and the features that make a home different. From there, we can determine a price range that makes sense and decide what the home is worth to you before writing an offer.