4 signs you're about to pay more than a house is worth

Business Insider | 8/10/2018 | Bankrate.com
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Because there's no guarantee that the house you buy today is priced reasonably, or will retain its value, it's important to use any tools and information available to make an educated guess.

Part of this process involves looking at the house's surroundings: Is it a great house in an so-so neighborhood, or a so-so house in a great neighborhood?

Things - Attention - House - Market - Inspection

A few other things to pay attention to are how long has the house been on the market, and the inspection results.

Just because some folks can afford to buy a home in today's competitive market doesn't mean they can afford to overpay.

Housing - Prices - Climb - Investment - One

As housing prices climb, it's even more important to make sure that your investment is a smart one. It's not every day you sign up for a 30-year $363,300 loan. Which, incidentally, is the average cost of a new home in the United States as of June 2018, according to the Census Bureau.

And prices are climbing. Home prices rose 7.1% year over year from May 2017, according to CoreLogic, with few signs of plateauing even as interest rates tick up.

Guarantee - House - Today - Value - Anyone

There's no guarantee that the house you buy today is priced reasonably or will increase or even retain its value. The best anyone can do is to use the tools and information available to make an educated guess. For buyers, this means talking to your agent and doing some research.

Here are a few indicators that can help you determine whether the house you want to buy will retain its value.

Sign - Home - Market - Average

One sign that a home may be overpriced: if it's on the market longer than average.

Ask your agent to pull statistics on the house you're eyeing. How long has it been listed? Is that longer than average for homes in the neighborhood? In that price range? For the type of house? Has the house...
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