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First-time homebuyers should be wary of overpriced homes. Lenders think twice about approving a mortgage if the appraisal is lower than a home’s sale price, forcing buyers to pull more of their resources to reach a deal.

Here are some indicators that a home is overpriced.

1. The home has been in the market for several months
   Overpriced homes tend to languish in the market for a good many months. Also called a “stale listing,” these homes leave buyers cold. Homes that are priced correctly usually get offers within weeks.
2. It’s priced higher than its neighboring properties
   A quick survey of homes within the neighborhood will give you an idea if a piece of property is overpriced. Check listings within the community or ask around to make sure the home you’re eyeing isn’t worth less than its asking price.
3. It’s priced higher than comparables
   A comparable property is one that’s similar in size, features, condition, and neighborhood to the property you’re interested in. Their list price should be roughly the same.
4. It’s the last home standing in a hot neighborhood
   Take it as a red flag: a home that remains unsold even as buyers are making offers on, and purchasing, other properties in the same neighborhood.
5. It’s priced for custom amenities that don’t have wide appeal
   Indoor basketball courts or special purpose rooms that are difficult to convert are custom amenities that can unnecessarily drive up the price of the home. Few buyers may find such novelties useful or worth paying for. The same goes for expensive upgrades.
6. Few show up during open houses
   Once a home is on the market, there’s usually a lot of activity associated with it within the first few weeks. However, if open houses aren’t bringing in traffic and offers, then it’s a sign that the home is overpriced.

To learn more, check out our comprehensive Buyers’ Guide.You can also call 410.371.0581 and 202.483.6300 or email andy@LNF.com.

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Filed under: Blog, Home Buying, Real Estate Tips by Andrew Pariser
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Buying a home for the first time can get pretty hectic, to say the least. There’s tons of details to keep track of, decisions to make, and things to do. Needless to say, it can get quite overwhelming for anyone.

One of the smartest strategies for first-time buyers is to keep everything organized. Staying organized will make the buying process easier and less stressful, allowing you to make the right decisions.

Below is a handy checklist that will help you prepare for your first home purchase:

• Get your finances in order. Before you even start looking for a home, make sure to get your finances in order. Request your credit report from the three bureaus (Equifax, Experian, and TransUnion), and make sure it’s accurate. Compile all necessary documents such as bank statements, pay stubs, and tax returns from the previous year to present to a loan officer.

• Do research on mortgages. Take a look at helpful sites such as Trulia.com’s mortgage tools, where you can find information on a wide selection of reputable lenders from all 50 states. You can get a personalized quote and read lender reviews from other users in order to determine the right lender for you.

• Find a reliable real estate agent. A good real estate agent will make the buying process quicker, easier, and more stress-free. Find an agent who’s familiar with the local market, and has experience with multiple transactions in the area.

• Research about the neighborhood. Search online for information about a specific neighborhood. Know what schools, major highways, services or other attractions are located nearby. Visit an area’s local precinct to find out about crime activity, ask potential neighbors, and drive during different times of the day to gain a clearer picture of what a neighborhood’s like.

• Know what you’re looking for. List down features you’d like to have in a home, and keep this list handy when you’re looking at properties. Once you’ve gathered several options, see which of the homes is the closest to your idea of a dream home, and make your decision.

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Filed under: Blog, Home Buying, Real Estate Tips by Andrew Pariser
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