How Do I Know If I’m Paying Too Much for a House?

How Do I Know If I’m Paying Too Much for a House?

How Do I Know If I’m Paying Too Much for a House?

Homebuyers walk a fine line during the purchasing process. On one hand, you know the size and type of house you want, the neighborhood you want to live in, and the amenities you desire. On the other, you don’t want to spend more money than necessary, and you certainly don’t want to spend more than the home is worth. How can you know if you’re spending too much for a house? Here are some key indicators the property isn’t worth it.

It’s the Highest-Priced House on the Block
If the other homes in the neighborhood are priced quite a bit lower it could be a signal that the one you’re considering has an unrealistic price tag. Perhaps the seller isn’t serious about selling the home, or they are overly attached and have settled on the steep price based on emotions rather than what the market will bear.

It’s Languishing on the Market
When you look at the days the house has been on the market, is it a long time? Normally, good deals are snapped up quickly, sometimes within a few hours! Even reasonably priced properties are under contract within 60 days. If the home has been for sale for several months, it could be a sign that it’s overpriced and the seller may not be budging. In this scenario, it’s smart to look deeper into why the home may not be selling at a normal pace.

It’s Over-Improved
That $50,000 koi pond? The high-end chef’s kitchen? That super-fancy bathroom renovation? Yeah, the seller needs to realize he can’t recoup those expenditures. If the house you’re viewing has higher-end upgrades than expected based on the type of home, those could be the reason it’s overpriced. Sometimes homeowners fall into choosing amenities that are too high-end for the neighborhood to support, but they won’t give up on the idea of getting their investment back. Over-improvement can lead to over-the-top pricing.

Your Realtor Says It Is
Your working with a real estate agent for assistance, so count on his or her guidance when it comes to a home’s price. If your Realtor says the home you’ve fallen in love with is overpriced, believe it. After all, the Realtor is the one who is coaching you on negotiations, explaining PITI payment calculator, and finding you other people to work with, like helpful title companies. Trust him or her to tell you the truth about the pricing.

When you’re shopping for a home, it’s important to know that you’re getting your money’s worth. If you think the property is priced to high, talk to your Realtor about making a lower offer. You may be able to get the seller to negotiate. If not, this just may not be the house for you.

Do you need an experienced loan officer to help you navigate your mortgage loan path? Call MIG today and speak with one of our professionals.


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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020