Agree. This works more for buying homes in a development or established neighborhood, the more cookie-cutter types. If you end up with a larger lot, a little further out with some land or a unique home, then it changes things for you. Then you either have a premium property (land) or you have a house that may appeal to less people, but when that right person sees it, they HAVE to have it at any cost.
The nice thing about buying a house is that your realtor should be able to do a market analysis for you and get some comparables in the area so you can see what other homes have sold recently for. You will also get this as part of your appraisal once you make an offer. If you are going to finance 95% of the buying price, then get a little protection from the bank if the appraisal comes in lower than the contract price. Back when the market was all haywire, they would just fudge the appraisal amount to fit the requested loan amount, thats a part of the reason people got so upside down on their loans.
There is a lot of stuff that goes into buying a house, don’t let it overwhelm you because if it did, no one would buy a house. A good realtor and a good mortgage consultant will help you through most of the stuff and answer any questions.
That’s the kind of stuff that makes me more confident–I would hope a realtor can help me do some of that work.
I’m definitely more excited about learning about the process rather than overwhelmed.