How do you know if you are paying too much for a house?

Asked by Gautfan@aol.com, 30736 Mon Apr 16, 2012

The house we are looking at has already had an appraisal. It is for $84 per sq foot when the average price per sq. ft. is on $80 in the area. The home owner based his price on the appraisal.

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12
Hank Miller, Agent, Alpharetta, GA
Mon Apr 16, 2012
Price per square foot is irrelevent, comparable sales is all that matters. It also doesn't matter what the owner thinks - only what the market and the buyers say....and you're a buyer so don't overpay

http://hounddogrealestate.com/whats-my-home-worth/
2 votes
Mack McCoy, Agent, Seattle, WA
Tue Apr 17, 2012
One way to figure it out is to determine if you can get a home that better suits you for less money.
1 vote
Cal D Caylor, Agent, McKinney, TX
Mon Apr 16, 2012
I would ask them if you can review the appraisal. Appraisers make adjustments both ways for desirable and undesireable features. Your realtor should be able to help you acess the situation and if you don't have one you should find one other than the listing agent. You can search for a buyers agent here on Trulia. Just type in the zip code in the search area and pick real estate pro. You can then sort them by the most recommendations or contributions among other criteria.

Good Luck - do not overpay or you will be stuck in a house you can not afford to sell.
1 vote
Terry Davis, Home Buyer, Fort Lauderdale, FL
Sat Jul 22, 2017
Get your own independent appraisal, seperate from the bank;s, and make your offer confingent upon the sale price meeting or exceeding your appraisal. The banks appraisal could come in $50k (or so) lower than the sell price and they could still approve you for the loan - which would mean you would have to make up the difference. If your independent appraisal contingency comes in at $50k lower, you can walk away -- OR get the owner to lower their price ro save the deal. At the very least, put in a clause that the bank's appraisal MUST meet or exceed the sell price or you have the position to 1) takenit anyway, 2) walk away, 3) negotiate the price again to the apraised price.
0 votes
Interested , Agent, DE,
Tue Apr 17, 2012
let us assume the house is averaged out at 1600 total sq feet... that would be a total of $6,400.00...
If, you had the comps that were used to get the value you would know or see how the $6,400.00 came to be...
0 votes
Laquita Baez, Agent, Atlanta, GA
Tue Apr 17, 2012
in certain cases, it is more important to purchase a home based on how much you can AFFORD and compare the seller's asking price to other comparable homes in the area to see how much other similar homes are selling for.
0 votes
, ,
Tue Apr 17, 2012
Good morning,

Mack is correct: once you review similar properties in your desired market, you must determine the value of any given home. If you can find a home that better suits your needs and desires for less money, that helps you set your market price for homes in that area.

I also recommend following the tried and true (and too often ignored) method of MONTHLY PAYMENT. If the payment fits, then it's the right house; if you can't afford the payment, it's the wrong house.

Trevor Curran
NMLS #40140
0 votes
Tim Page, , 99037
Mon Apr 16, 2012
Never buy a home on the home owners appraisal. Appraisals have a shelf life if two weeks now. In other words, banks will order new appraisals after two weeks because they are too old in many market areas. Comps must be within three to six months. Hire an appraiser and a Realtor before you buy the home.
0 votes
Hank Miller, Agent, Alpharetta, GA
Mon Apr 16, 2012
i wuz wundering, will it be hard to type with broken fingers?
0 votes
Lee Taylor, Agent, Decatur, GA
Mon Apr 16, 2012
Hank is on it, although it is irrelevant that he misspelled irrelevant.

You know when you know, brother...
0 votes
, ,
Mon Apr 16, 2012
Only the appraisal ordered by the lender will be used to determine an actual fair market value.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes
Marge Bennett, Agent, Fort Myers, FL
Mon Apr 16, 2012
you can hire your own appraiser to do a second appraisal. Or you could make your offer based on the $80/sq ft and see if the seller will accept it. If you are getting a mortgage, the lender will order an appraisal anyway. Just make sure your contract is subject to the appraisal or getting approved for a loan.
0 votes
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