We Asked Real Estate Agents What Signals That a Home Is ‘Overpriced’ in 2026
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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In 2026, real estate agents and brokers say buyers will be able to spot overpriced homes through subtle signals that can help keep them from overpaying. With higher mortgage rates and a more balanced market, buyers have more leverage, if they know what warning signs to look for.
Here’s how buyers can tell when a home is overpriced in 2026, and what those early red flags usually mean.
1. When a Listing Isn’t Getting Much Action
The list price of a home doesn’t always reflect what the house is actually worth, or what problems may hide beneath its walls. “If a listing gets a lot of online views or saves but barely any showing requests in the first week or two, that’s a problem,” according to Brett Rosenthal, realtor and team leader with The Revolve Philly Group at Compass in Philadelphia.
Fewer comparative showings is a likely signal that the home is overpriced, added Chuck Vander Stelt, real estate agent and broker with Quadwalls.com.
2. A Lot of Cheaper and Similar Recently Sold Homes
Another simple way to determine if a home is overpriced is to search Zillow or Redfin for homes that sold in the last three months in the same area for the same type of property you are searching for, according to Kristin Boekhoff, CEO of Bright Door Homes. “You can quickly gauge if a particular home is overpriced because it will be listed for a lot more than similar homes that recently sold,” she said.
For example, she shared, try searching in a neighborhood for a three-bedroom, two-bath home between 1,200 and 1,500 square feet that has been recently renovated. If you find those homes have sold, say, for a price between $360,000 and $380,000, but the one that you are looking at is $420,000, it is probably overpriced not “better.”
3. Renovations That Don’t Match the Neighborhood
A home price that reflects recent upgrades might sound good on paper, but if other homes in the neighborhood are offering similar amenities for cheaper, there’s not much reason to buy a higher priced one. Rosenthal pointed out that “over-renovating past the neighborhood’s price ceiling is one of the fastest ways to end up overpriced.”
While this is more of a sellers’ problem, buyers can pay attention to what renovations are netting them in a neighborhood and make the savvier, and more affordable, choice.
4. Surface Fixes Masking Systemic Problems
When finishes or surfaces (paint, cabinets, countertops) are new or upgraded, but major systems are old, layouts are funky or functionality is disappointing, it could signal overpricing or just feel overpriced, Boekhoff noted. “If what is delivered in the home doesn’t match their expectations, it will feel overpriced to them,” she said.
You should never have to settle for less than what you want if the market is robust and there are more options to choose from.
For sellers, remember that buyers may be looking a lot more closely than you realize. “They’ll lean on older sales, ignore condition differences, or compare themselves to a home that had something extra like parking, outdoor space or a better location,” Vander Stelt said.
5. Homes That Come Back On the Market With Price Cuts
Homes that enter the market too high frequently then leave and come back on the market with price cuts or credits were likely overpriced. Sellers may be overconfident and set the price so high initially that they have to keep cutting the price to make it palatable to buyers. Rosenthal said, “I see sellers chase the market down with price cuts or end up giving credits after inspections just to get a deal done.”
While this is bad for sellers, as multiple months on a market overpriced “can wipe out all of the profit,” Boekhoff said, it can work in a buyer’s favor by creating negotiating room.
What Buyers Can Take Away in 2026
In today’s market, Vander Stelt warned sellers that “market conditions are not ripe for speculation,” which usually works in their favor. Buyers should do their research and look for signs that the price is not right on a home and always negotiate.
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