How do I know when a home is overpriced?

The easiest way to tell if a home is overpriced is by looking at comparable homes in the area. If the price is listed much higher than the other recent sales, it’s probably not worth it. Another obvious indication is if it has been sitting on the market for an extended period of time. If other homes in the area are selling fast, but this one is stagnating, it’s a clear sign that the market is healthy, but that particular home isn’t worth the list price.