How to Know if a House Is Overpriced (Featured in Redfin)

How to Know if a House Is Overpriced (Featured in Redfin)

We were featured in a Redfin article! Brian Burke of The Kenna Real Estate Group was quoted as a real estate expert in Redfin's nationally published buyer's guide. Check it out here: How to Know if a House Is Overpriced | Redfin, now part of Rocket Companies.

When Redfin set out to explain how buyers can tell whether a home is priced fairly, they asked brokers around the country to weigh in. Here's what Brian Burke at The Kenna Real Estate Group told them:

"Compare the asking price against recent sold prices of similar nearby homes — not other listings, since those are just asking prices and can be inflated too. If the price-per-square-foot is noticeably higher than the neighborhood norm without upgrades to justify it, or if the home isn't getting showings while others are selling, you're likely looking at a seller who's anchored to a number the market won't support." — Brian Burke, The Kenna Real Estate Group

With 25+ years in Colorado real estate and 13 years before that as a multifamily construction superintendent, Brian reads pricing the way a builder reads a blueprint — from the bones out. Below is the full Front Range playbook for spotting an overpriced home before you overpay.

What does "overpriced" actually mean?

A home is overpriced when its asking price sits meaningfully above what comparable homes have recently sold for, with no upgrades or features to justify the gap. The clearest tell isn't a number on a flyer — it's market behavior. When a home lingers while its neighbors sell, the market is telling you the price is wrong.

The signs a house is overpriced

1. It's been sitting on the market

Fairly priced homes usually draw attention and offers within the first couple of weeks. Along the Front Range, a balanced market moves homes in roughly 30 to 90 days; a hot stretch can be one to three weeks. If a listing has sat well past the average days on market for its neighborhood, that's signal number one — and the longer it sits, the more buyers assume something's wrong beyond the price.

2. It keeps coming on and off the market

A home that's been listed, pulled, and re-listed is often a seller chasing a number the market already rejected. Pull the listing history. Repeated price changes, short listing windows, or failed contracts inside the last 3 to 6 months are a flag that the home is overpriced or has an underlying issue.

3. The neighbors are selling — this one isn't

If comparable homes nearby are going under contract quickly and this one isn't, demand for the area clearly exists. Buyers just aren't willing to pay this price for this home. The house is desirable; the number isn't.

4. The whole block is stalled

Flip side: if several homes in the neighborhood are also sitting, sellers may be pricing off an older, hotter market while buyer demand has cooled. That's a sign expectations across the area have drifted above what the market will currently support.

5. The price doesn't match recent sales

This is the one that matters most, and it's the point Brian made in the Redfin feature: compare the asking price against recent sold prices of similar nearby homes — not other active listings, because those are just asking prices and can be inflated too. Look closely at:

• Price per square foot versus the neighborhood norm
• Lot size
• Renovations and upgrades (or the lack of them)
• Layout and bed/bath count

If the price-per-square-foot is well above the area norm without upgrades to justify it, the seller is likely anchored to a number the market won't support.

6. The estimates and the appraisal come in lower

If the list price is significantly higher than automated value models like the Redfin Estimate, take note. For a home you're serious about, an appraisal is the real test. If it comes in low, you've got leverage to renegotiate — or to walk.

7. It just doesn't feel worth it

Value is partly objective and partly personal. If a home needs too much work, has an awkward layout, or doesn't fit your budget and goals, it can be overpriced for you even when the comps look fine on paper. Trust that instinct and talk it through with your agent.

How do I use comps to check a home's price?

A comparative market analysis (CMA) lines up your target home against similar properties that recently sold — same general size, condition, and location — to estimate true market value. At The Kenna Real Estate Group, this is the backbone of how we price and how we coach buyers to offer. We don't guess; we build the number from the data.

How do I make an offer on a home I think is overpriced?

• Anchor to comps, not the list price. Base your offer on what similar homes actually sold for.
• Bring the evidence. Days on market, price history, and current conditions strengthen your case with the seller.
• Be ready to walk. If the seller won't move, there's always another home. New listings hit the Front Range every day.
• Lean on your agent. A good one helps you assess pricing, negotiate hard, and avoid overpaying.

How do I know if a home is priced right in the Denver metro?

Front Range pricing varies block by block — what's a fair price-per-square-foot in Centennial isn't the same in Highlands Ranch, Arvada, or Fort Collins. The only reliable read is a local one: recent sold comps in that specific neighborhood, current days on market, and an honest look at the home's condition. That's exactly the work we do for every buyer we represent.

Frequently asked questions

Why do sellers overprice their homes?

Usually emotional attachment, overestimating the value of their upgrades, or pricing off an older, hotter market. The result is the same: the home sits.

How long on the market is "too long"?

Compare it to the average days on market for the home's own comparables. In a balanced Front Range market that's roughly 30 to 90 days; in a hot stretch, one to three weeks. Sitting well past that average is a red flag.

Are online home value estimates accurate?

Automated valuation models are a useful starting point, not a final answer. They're best used alongside real sold comps and, for a home you're serious about, an appraisal.

Should I get an appraisal before buying?

If you're serious about a property and suspect it's overpriced, an appraisal is worth it. A low appraisal gives you real leverage to renegotiate or walk away.

Talk to a team Redfin trusts to get it right

Knowing whether a home is overpriced comes down to reading the comps, the market, and the condition — and knowing the neighborhood cold. That's what we do every day across the Colorado Front Range, from Fort Collins to Colorado Springs. If you're weighing an offer and want a straight answer on whether the price holds up, reach out to The Kenna Real Estate Group. Helping You Find Your Pad.

Read the full Redfin feature: How to Know if a House Is Overpriced on Redfin.