Ever find your dream home only to realize the price seems… a little too dreamy? You’re not imagining things. In today’s real estate market, finding that a home is overpriced is common, whether due to market changes or wishful thinking from the seller.

But how can you tell if a home is truly overpriced or just slightly above fair market value? Let’s break down the key signs a house is overpriced so you can avoid overpaying for a house.

1. The Price Doesn’t Match Comparable Homes

A home’s price should reflect the local market, not just what the seller wants to get for it. A real estate market value analysis (also known as a comparative market analysis, or CMA) is a formal way to help determine whether the listing price is realistic based on recent sales of similar homes, but there are a few signs you should watch out for as well:

• Comparable homes in the neighborhood have recently sold for significantly less.
• The price per square foot is noticeably higher than similar properties.
• The home is priced like a fully renovated property but still needs major updates.

If a house is priced well above market value without a solid justification, it’s likely overpriced.

2. The Listing Has Been on the Market for Too Long

In a strong real estate market, well-priced homes don’t last long. If a property has been sitting unsold for months, that’s often a sign that buyers are rejecting the price.

A home that lingers on the market may also face price cuts over time. While small reductions can help spark interest, multiple drops suggest the seller started too high and is slowly adjusting to reality. If you wait long enough, your dream home may just come into your dream price range.

3. The Home Doesn’t Appraise for the Asking Price

If you’re using a mortgage, your lender will require an appraisal to determine the home’s market value. Of course, if the appraisal comes in lower than the asking price, you’ve got hard evidence that the home is overpriced.

Sellers who ignore an appraisal and insist on their inflated price are often unrealistic about their home’s true worth, so don’t get your hopes up that they’ll have a sudden change of heart!

4. There’s Little to No Buyer Interest

If a home is priced fairly, buyers will take notice, especially in a competitive market. But if a listing has been up for weeks with little activity, the price might be turning buyers away.

Warning signs of low interest include:

• No offers, even after multiple showings.
• Few people attending open houses.
• No bidding wars, even in a hot market.

If buyers are overlooking the home while others in the area sell quickly, chances are it’s priced too high.

5. The Price Doesn’t Reflect the Home’s Condition or Features

Some sellers assume that every upgrade or unique feature adds value. However, that’s not always the case.

For example, an outdated kitchen, DIY renovations, or overly personalized design choices (like a bright purple exterior) can hurt a home’s appeal rather than justify a premium price. Even high-end customizations—such as a built-in wine cellar or a massive backyard fountain—might be valuable to the current owner but not to the average buyer.

If the home lacks significant upgrades, has outdated finishes, or has features that won’t appeal to most buyers, the price should reflect that.

Work with a Pro to Avoid Overpaying for a House

No one wants to pay more than a home is worth. The best way to ensure you’re getting fair market value is to work with an expert who understands local pricing trends.

At Hawkins Real Estate Group, we help buyers identify overpriced listings, negotiate smarter deals, and make confident real estate decisions. If you’re ready to find the right home at the right price, contact our team today!