HOW TO AVOID OVERPAYING

So - you've found the right home. How can you be certain you are not paying too much?

Once you make your choice, it's quite likely you've also become well informed about property values. Why is this so? Before you made your choice, you probably looked at a variety of homes, possibly as many as six to twelve properties. That's called "comparison shopping."

As you visited each home, you made value judgments based on size, features and amenities offered, as well as condition of the homes. Without realizing it, you compared prices, looking for the greatest value for your dollar.

Nevertheless, another aspect of your purchase further protects you from purchasing an overpriced home. Called an "appraisal," it's a required step in the mortgage approval process. Your mortgage lender, who is putting up the majority share of the purchase price, also wants to be sure the home is not priced above the marked.

Thus, the lender asks a licensed appraiser to determine the home's value for the record. If the appraised value does not at least match the purchase price, the lender may not approve the loan, or at the very least, may ask for a higher downpayment.

As a buyer, it's easy to spot the overpriced homes. As your agent, I am here to advise you.