Interesting question. If the home is priced higher than those on the same street that have recently sold, that home is over priced. If you have a buyer agent (if you are not familiar with buyer agency, it's very important and you should learn about it) your agent should be able to show you what the most recent similar homes sold for. You certainly do not want to overpay and that is why you need your own agent who will protect and look out for only you.
You want to purchase the home that suits your needs as well as the home that is priced right. If you overpay for a home and then make improvements, you may never be able to get rid of the home for a profit when you decide to sell and you could lose a lot of money. It's important to do research on the homes you are wanting to purchase as well as the area. If the home is over priced, there is a good chance that the home won't even appraise. I hope this little bit of information helps.
I do not know all the facts here so if you feel like proving more information, feel free to email me at firstname.lastname@example.org. I'd love to talk to you if you have more questions.
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