How do you know if you're paying too much for a house?

2 things that will help you! 1- with financing, an appraisal is done to confirm for the lender the value of the home. 2- a trusted local expert REALTOR is key in helping guide you through the process and look at and review the most up-to-date comparable data to reveal the market values that are happening in our fast pace market!

An appraisal will let you know if you are paying too much for a house.

The data tells you, not your gut. We look at "sold comps"—what similar neighbors actually paid in the last 3 to 6 months. If every similar house sold for $400,000 and you are offering $450,000, you are overpaying. The ultimate check is the Appraisal: if the bank won't lend you the money because the value isn't there, the price is too high.

This is one of the reasons I recommend having a real estate agent for buyers. They can run comps for you and see what similar homes are going for in that specific area. Home prices can vary greatly from area to area and even neighborhood to neighborhood so it is important you are comparing apples to apples. You also need to adjust for things like additional bedrooms, bathrooms, and yard size.

Have your trusted Realtor run comps and make sure the property your purchasing is worth the price