It's not uncommon for a house to be overvalued in today's market. With supply low and demand high, sellers have the clear upper hand. As a result, they'll often overprice their homes in hopes of maximizing profit.
Unfortunately, this can lead to problems later -- most commonly, with appraisals. If a buyer offers more than the home appraises for, they're forced to make up the difference out of pocket or, in some cases, back out of the deal entirely.
Are you preparing to buy a home? Want to make sure you're not buying an overvalued property or, at least, that you're making right-sized offers for your market? Here are five ways to spot an overvalued home.
5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.