How to Find Out Whether You Are Overpaying For Your Dream House?

Buying a house in Union County’s Fanwood, Kenilworth, Garwood, or Mountainside involves a substantial amount and is perhaps one of your life’s most significant decisions. But if you’re buying your first house, you may get caught up in trying to buy your dream property and end up overpaying for it. Whether you’re buying it from a direct seller who’s ready to ‘sell my house in NJ fast’ or a company that buys properties for cash to sell them quickly and promises that ‘we buy houses in NJ as-is’, you should exercise due diligence. Not sure how you can steer clear of overpaying on your dream home in Fanwood, Kenilworth, Garwood, or Mountainside? Here are five tell-tale signs.

5 Warning signs that you’re overpaying for your dream home

  1. Listing price isn’t aligned with recent home sales of similar properties in the area: You should pay attention to the current housing market in the region and the community forecast to find if the listed price doesn’t line up with the recently sold comparable houses in the region. Instead of looking at what comparable houses are being valued at, you should focus on the amount people actually paid to buy similar homes most recently.
  2. The price is higher than the home valuations of online tools: If one or more reliable online valuation tools show the property value to be lower than its listing price, it could be a red flag. However, you should confirm it with your real estate agent as the latter could catch something that’s beyond the scope of an online valuation tool’s algorithm.
  3. It’s a stale listing: If your chosen house has been on the market for a significantly longer time than comparable houses in the area, it could be overpriced. And if it has spent a long time in the market, you could avoid overpaying by negotiating the price or get other valuable concessions, which the seller might be willing to offer.
  4. The price is similar to comparable unsold homes: If your chosen home’s asking price is similar to comparable homes that were unsold and taken off the market, there’s a good chance the property is overpriced. It’s important for you to know these numbers and avoid your emotions from influencing you into spending more on a house that you think you would be comfortable buying.
  5. It has home inspection issues: If a home inspector finds any issues with the house or it has some hidden maintenance issues that weren’t disclosed by the seller, you could end up overpaying to get the property habitable. For instance, buying a home with a badly-build foundation or one that needs you to overhaul the entire plumbing system could cost you significantly.

What can you do to avoid overpaying for your dream house?

Working with a buyer’s agent would be a good way to avoid overpaying. Such an agent would look after your best interests and will have an adequate understanding of the local housing market as well as the necessary inside information to gauge if the home has been priced fairly.

Another way to avoid overpaying for your dream house is to have an appraisal contingency in your contract. This is a clause included in your purchase offer that clearly mentions in case the home isn’t appraised for the price that has been agreed upon, you’ll be able to quit the deal with your deposit.

Whether you’re buying from someone who’s ready to ‘sell my house in NJ fast’ or a cash buyer that says ‘we buy houses in NJ for cash and sell it fast’, you should remember the pointers above to steer clear of overpaying on your dream house.

 

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Estefania Castaneda
Estefania Castaneda
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Extremely pleasant, attentive to all my needs always. It was a pleasure renting an apartment from Ken.
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Vichai Soysouvanh
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Can't say enough about Ken and his team. This was the most seamless sale I made. I didn't have to deal with all the... nonsense that comes with selling your home. They bought my house as is, I didn't have to declutter and pay a broker commission. All in all great experience, will do business again.read more
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I had a wonderful experience renting one of their properties for 7 months. The apartment was beautifully remodeled and... Ken and his team were always responsive to any needs. I would recommend to anyone looking to sell or rent.read more
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Alfredo Garcia
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Selling my property too Ken was the best thing I did. Although I was skeptical at first I soon found out how... professional he was. Even though my closing contract was not standard because of the pendemic situation. He followed through on time with all the contract terms as promised. Thank you Ken for your professionalism.Alfredo Gread more
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23:27 19 May 21
Ken was referred to us by someone who had sold their home thru Ken last year. From the first meeting to the last... transaction, Ken and his team were professional, efficient, easy to work with, and above all.... caring. Each seller's situation is different, and Ken truly understands that. We were treated with respect each time.Since we were in a time crunch situation, selling our home with a cash offer from Ken was the best decision we could have made. We were perfectly okay with getting slightly less money for our home as compared to selling it via an agent. But if you consider the money saved on agent commissions (both buyers and sellers), closing costs, repair costs, attorney fees, and most important of all... time and headache, you can't beat the option to sell your home with a guaranteed cash offer from a reputable buyer like Ken.My wife and I were very pleased with our experience with Ken. If you are in the market to sell your home fast for a cash offer, I highly recommend giving Ken a call!Best of luck!Vishread more
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Ken and his team were great. They were easy to work with, professional, and responsive. If you are thinking of selling... your home they offer a super easy process.read more
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I am a travel nurse and stayed in a town home for 3 months... It was exactly as described and any issue that came about... was handled within a few hours - I would definitely recommend and I would definitely stay again!read more
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12:41 14 Aug 20
Amazing experience! Ken was upfront, quick and got the deal done in no time. Having done a number of real estate... transactions this was by far the easiest and smoothest. I would unconditionally recommend him to anyone looking for an easy, quick and fair transaction.read more
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19:10 26 Mar 20
Ken is a very professional individual from start to finish. As promised, he gave me a fair deal on my one of my... properties that was in rough shape. He was knowledgeable and responsive to my requests and as promised we didn't need to waste time with inspections and appraisals and we closed quickly. He made it painless as possible by having his crew handle the clean up. This was truly a quick and easy process but a professional individual. Thanks Ken!read more
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