“Am I Overpaying for This House?” Here’s What I Tell My Buyers
This week, I showed a property listed at $945,000, and my Buyer asked a fair question: “Isn’t this priced a little high?” Honestly…I agreed.
It’s a common concern—and a valid one. No one wants to overpay for a home, especially when it’s one of the biggest financial decisions you’ll make. So, how do you know if a house is priced right?
Here are three things I walk through with my clients to give them peace of mind:
1. Look at the Data (Not Just the List Price)
Pricing isn’t just a shot in the dark. There’s data behind it, and your Realtor should be showing you homes that have sold in the area to give you an idea of the market/price.
It’s important to review other factors that impact price: How long has this house been listed? What’s the average number of days on market in that Town?
If a home has been sitting for 14 days and the average home sells in 3, that could be a sign it’s priced too high. But if it just hit the market and already has multiple offers, it’s likely priced right—or maybe even low, to drive up offer amounts.
2. Use Contingencies to Protect Yourself
One of the most helpful tools you have as a Buyer around a property’s value is the appraisal contingency:
This Agreement is contingent upon the property appraising at or above the purchase price.
If it doesn’t, you have options. You can walk away, renegotiate, or decide if you’re still comfortable moving forward. It’s a great way to get a professional, third-party opinion of value after your offer is accepted. If you are getting a traditional mortgage, your Lender also requires an Appraisal.
3. Zoom Out and Consider Your Bigger Picture
A big part of this conversation is your goals and your timeline. The market is constantly changing—what’s considered “overpaying” today might not look that way six months or a year from now.
If you’re planning to stay in the home for at least a few years, a slight difference in price today may not matter much long-term.
For example, I bought my house in 2017. Today, it’s worth $200,000 more. If I overpaid by $10K back then (which I thought I did) …I am A-OK with that now.
But if you’re planning to flip a property or only stay for a year or two? That value difference certainly matters a lot more.
My Final Thoughts
No one wants to overpay, for anything. But before you stress yourself out or walk away from a home you love, take a step back.
Review the data. Use smart contingencies. And think about your long-term goals.
Buying a home is a big deal. Work with an agent you trust—someone who will walk you through the questions you may not know to ask.
