Asking yourself if you offered too much on a home you are currently in contract on is a question many people begin to ask themselves. This is normal so don't sweat it.
If you have not yet made an offer, your realtor should run comps for you and give you some sound advise, after all, this is one of the reasons you hired your agent. If you are past that point and you are obtaining a loan on the property then your lender will be ordering an appraisal. If you are paying cash for the property you can have an appraisal ordered to be sure the market value of your home is no lower than you offered.
Contracts have a clause that basically gives you an out or a chance to renegotiate the purchase price if the appraisal price comes in lower than the contractual price. This is your out so to speak. If your appraisal comes in lower then it is time to re-negotiate your contract or get out of the contract altogether.
Keep in mind that a home that is like the one you are purchasing may have been purchased for less than you are paying but there are so many variables that come into play. The two homes can have many different amenities or upgrades that can dramatically have an effect on the appraisal price.
For example, does one home have a pool and the other not, fireplace, granite, upgraded cabinets or flooring, shutters or larger lot. Many of these things make the two home values thousands of dollars apart. Also, the condition of the home come into play. One home could need tens of thousands of dollars just to bring it to a level that is actually livable.
Prices will always fluctuate from one year to the other so don't worry what someone may have paid last year or next year, no one can tell the future or know whether your home will go up in value or down. Normally, they go up over time but as you may have seen our market has changed dramatically with the many short sales and foreclosures on the market. Don't ask your realtor what the value might be next year or in ten years because if they give you an answer then you need to find a new realtor!
Find a top agent or a great home in Tempe, AZ at Tempe AZ Real Estate Listings on MLS or in Chandler's Fulton Ranch at Fulton Ranch Real Estate Agent or in Gilbert's popular Power Ranch Community at Power Ranch Real Estate in Gilbert AZ
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Buying a home can be complex process and exiting time.When we buy home choosing a real estate agent may be the most important decision one can make when we want to buy property.I like the information that you shared here and get good information from here.
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