Have your Realtor show you the comps (don't just rely on websites on your own). It sounds like you are saying the home is in better-than- average condition for the area, so you would need to expect to pay more than the average. The average price would include fixer-uppers and even tear-downs. Also, what the sellers paid 6 years ago is irrelevant. Lastly, if you are buying this home to live in, and plan to stay indefinitely, don't be afraid of paying a little more to get the house you want. You will enjoy it for years to come, and the difference in the monthly payments is minimal.