How to Know If a Home Is Overpriced in Today’s Market

1. Start With the Comps (Comparable Sales)

The fastest way to tell if a home is overpriced is to compare it to similar homes that recently sold nearby.Look for homes that match in:

• Location

• Square footage

• Bedrooms & bathrooms

• Lot size

• Condition

• Age

If the listing price is significantly higher than those comps without offering anything extra, that’s a major red flag.

2. Look at Days on Market (DOM)

A fairly priced home sells quickly — especially in a competitive market.

Signs a home might be overpriced:

• It's been on the market longer than similar listings

• Multiple price reductions

• New photos or refreshed descriptions to create “interest”

Long DOM often signals the market has rejected the price.

3. Check the Price Per Square Foot

Divide the home’s price by the square footage to compare fairness.If the price per square foot is much higher than comparable homes, it may be overpriced unless it offers:

• Premium finishes

• Unique features

• Larger lot

• Better location

• Recent renovations

If none of those apply? The listing likely isn’t justified.

4. Analyze the Condition of the Home

A home needing updates but priced like a fully renovated property is a classic sign of overpricing.

Watch for:

• Outdated kitchens

• Old HVAC systems

• Aging roofs

• Old windows

• Worn flooring

If the home needs work, it should be priced lower — not higher.

5. Compare the Listing Price to the Zestimate (or Similar Estimates) — Carefully

Tools like Zillow, Redfin, and Realtor.com offer automated value estimates.They’re not perfect, but they’re helpful when:

• The estimate is much lower than the listing price

• Multiple platforms all show lower valuations

If everything indicates a lower value, the seller may be overreaching.

6. Consider the Local Market Direction

Markets shift — quickly.A price that made sense last year may not make sense today.

Ask these questions:

• Are prices in your area rising or stabilizing?

• Is inventory high or low?

• Are homes selling above or below asking?

If the market is cooling, overpriced listings stand out fast.

7. Evaluate the Location Honestly

Two homes can be identical, but the one in the less desirable location should be priced lower.

Look at:

• Noise (highways, traffic, airports)

• School ratings

• Walkability

• Access to shopping and essentials

• Neighborhood reputation

• Proximity to parks, recreation, or waterfront

If the home is in a less ideal area but priced like a top-tier neighborhood, that’s a clear sign it’s overpriced.

8. Check for “Emotional Pricing”

Sometimes sellers price based on emotions, not reality.Signs include:

• “My neighbor sold for X, so I want more.”

• “I put a lot of love into this home.”

• “I’m not in a rush to sell.”

• “It’s worth that much to me.”

Buyers shouldn’t pay a premium for a seller’s sentiment.

9. Watch for Realtor Red Flags

If the listing has vague descriptions like:

• “Priced to sell!”

• “Won’t last long!”

• “Tons of potential!”

…but the price is high, this can indicate the agent is trying to justify an unrealistic seller demand.

10. Get a Professional Opinion

A trusted real estate agent can run a detailed CMA (Comparative Market Analysis).

They will evaluate:

• Accurate comps

• Market direction

• Home condition

• Neighborhood trends

• True value

This is the most reliable way to know if a home is fairly priced.

✨ Final Thoughts

An overpriced home wastes your time, energy, and emotional investment.By learning how to spot the signs early — and leaning on the expertise of a knowledgeable real estate agent — you can stay focused on homes that truly match your budget and your goals.