Can You Overpay for a House?

moneyhouseI work exclusively with buyers and let me tell you that one of the lines I hear the most is “I’m not going to overpay for this house.” GREAT news! There’s no such thing as overpaying for a house. You are most likely going to be obtaining a loan to purchase your new home, right? Well, because the banks don’t want to lend you more than what they think they should they are going to send out an appraiser to assess the value of the property. So, what does that mean? Let me tell you…

You will have an appraisal contingency (if you are mortgaging your home). This means that once you are under contract, your lender will send out a third-party appraiser. That appraiser will visit the property, measure, take notes, etc. They will also look at the homes that have sold within six months in a one mile radius of the property you are purchasing. They will take into consideration: square footage, number of bedrooms and bathrooms, upgrades (granite countertops, hardwoods, etc.). If the property does not appraise at or above the contract price then LUCKY YOU, you have options (call us at The Peters Company and we will discuss those with you).

Often times people believe that homes are overpriced. And by often times, I mean, like, 99% of the time. So, what is my advice? Ask your Realtor. They will look over comparable homes and statistics. Ask yourself, “If I lose this home over $X, is it worth it”? And question if it is better to sleep on it or sleep IN it. At the end of the day, do you want a deal or do you want a home? Sometimes you can’t have both. Call The Peters Company and we will help guide you through it all!

Written by Shiloh Sadoti, Buyer Specialist, The Peters Company

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