What was your agents advice? What information did they provide on the area, other comparable sales, etc? Quite a broad range in that zip code in terms of home prices. I would need more details to give you a better answer. I would start with your agent, they should be able to answer your questions, provide comparables, and give you a better feel for the area. One concern I would have, if the counter was over your price limit, I'm guessing it was listed quite a bit over your price limit. May need to look at homes more in your price range.