It happens more than you might think... we tour a house and find that it works well for you. The layout, location, and overall feel of the house are a good fit.

But... the price is a bit higher than you think is reasonable to pay for this house.

For example, perhaps the house is listed at $420K, and based on other houses we have explored, we conclude that it's worth closer to $400K.

So... what should you do?

Option 1: Make the Reasonable Offer

If $400K seems reasonable to you, let's make that offer - or even a bit lower to leave room for negotiation. 

Option 2: Offer More Than You Think It's Worth

Some buyers do this to avoid missing out - but you might feel like you are overpaying for the house.

Option 3: Don't Make an Offer

If you're confident the home isn't worth the asking price and you're not willing to pay it (or close to it), deciding not to make an offer is okay too.

Generally, I recommend Option 1 -- making the offer that seems reasonable to you.  But before we pursue that path, here's what we should discuss...

Let's say you offer $400K on the $420K home. If someone else buys it for $420K, will I be disappointed I didn't get it?

If no - your $400K offer makes sense.

If yes - maybe $400K is too low, and you care more about getting the house than you realized.

In the end, if you like the house but not the price, make the offer that feels right to you... but let's at least pause to process how you'll feel if you lose the house to another buyer who's willing to pay more.