"What happens if you “overpay” for a home?" This is one of the top questions I have been asked recently.

I speak with a lot of buyers that are concerned about ultimately paying too much for a home…

I recently sent out a report that year-to-date, only 5-8% of appraisal have been coming in below contract price, and over 50% of appraisals are coming in ABOVE the final purchase price.

What happens if the market adjusts and all of a sudden, you are stuck with a home you paid too much for?

I believe Milwaukee real estate values are here to stay, primarily for the following reasons:

• We would need 4,050+ more listings right now just to have a “balanced” healthy market as of September 30, 2023. That's how short we are on inventory!!
• Our local jobs economy is strong and has a bright future. We have a diversified employer base, we are not focused on one particular business or industry.

All that aside, let’s say you do “overpay” for a home:

There is a listing coming up in Wauwatosa, it’s listed for $439,900, let’s say you end up getting an accepted offer for 10% more than list, or $484,000. But let’s say it’s ultimately actually “worth” $440,000. The list price.

It is well established fact that property values slowly rise every year, as they have for the last 70+ years! Let’s use 3.25% as a safe estimate. You’d only need to own the home for a little over 2 years for the “value” to rise from $440,000 to $484,000!

This is the magic of property appreciation in action. Property steadily gains value and builds wealth for you and your family.

I can generate a similar "bid over ask" tool very quickly for any offer you are considering so you can feel comfortable with your offer. Here's a PDF copy as well if you'd like to look more in depth. 

Questions? Let me know! 414-488-0438