Today I want to talk about the number one sign a house is overpriced — and here’s the key part — the listing agent, the seller, or the builder already knows it.

If you’re house hunting and trying not to get taken advantage of, this is something you have to understand. I see it every single day.

Why This Matters (Especially Right Now)

I’m a mortgage lender licensed in all 50 states, and my job isn’t just to help people get approved; it’s to make sure you don’t overpay for a house because of slick marketing or shiny distractions.

When a house is priced correctly, it sells.
When it’s not, sellers don’t usually lower the price right away.

They do something else.

Red Flag #1: Big Builder Incentives

Let’s start with new construction.

In 2020 and 2021, when the market was on fire, did builders offer:

• $20,000

• $30,000

• $40,000

• $50,000+
  in incentives?

No. Absolutely not.

If builders can sell homes at the listed price, they do not give away massive incentives.

Why Builders Hate Lowering Prices

Builders almost never want to drop the purchase price, and here’s why:

Once a home sells at a lower price, it becomes a comparable sale.
That affects the value of every other home they’re trying to sell.

Lower one price → appraisals come in lower → future sales get harder.

So instead of lowering the price, they offer incentives.

What Big Incentives Are Really Telling You

Here’s the simple math:

If a builder is offering $30,000, $40,000, or $50,000 in incentives, they are telling you:

👉 “This house is overpriced by that amount.”

You are far better off buying a house for what it’s actually worth than paying a higher price just to get incentives that:

• Don’t lower your taxes

• Don’t lower your true value

• Often, disappear the moment you sell or refinance

If you see a big incentive, take that number and subtract it from the purchase price.
That’s what the house is really worth.

Red Flag #2: The 2-1 Buy Down

The second big sign a house is overpriced is a 2-1 buy-down being heavily marketed.

Whenever you see:

“Seller offering a 2-1 buy down!”

That’s code for:
“We’re trying to make this house feel cheaper than it actually is.”

Why 2-1 Buy Downs Are So Misleading

A 2-1 buy-down works like this:

• Year 1: Lower-than-market payment

• Year 2: Payment increases

• Year 3: Full payment at the real interest rate

So a $300,000 house feels more like a $260,000 house in year one.

That’s not affordability — that’s marketing.

If the house were priced correctly, they wouldn’t need to do this.

Temporary Payment ≠ Permanent Value

I say this all the time:

Never fall in love with something that isn’t permanent.

Temporary buy-downs melt away — just like ice cream left on the counter.
What you’re left with is the real price and the real payment.

If you respect your money, don’t base a purchase on something designed to disappear.

What About Seller-Paid Closing Costs?

You know I love asking for seller-paid closing costs — but context matters.

If you see listings advertising:

• “Seller will pay $5,000”

• “Seller offering closing cost credits”

That’s another indicator that the house is having trouble selling at that price.

Individually, these things don’t always mean a house is overpriced.
But patterns matter.

The Big Picture Buyers Miss

Houses that are:

• Priced correctly

• Truly competitive

• In demand

Do not need incentives, buy downs, or flashy offers.

When you see a lot of “extras,” it’s because the price is wrong.

And if I were buying in a development with huge incentives, I’d be nervous — because I’ve seen what happens next:

• Incentives stop working

• Prices get cut later

• Early buyers end up overpaying

Final Thought

I believe homes should be sold for what they’re worth — not dressed up with gimmicks that make housing less affordable in the long run.

Shiny objects don’t change value.
They just distract buyers from the truth.

If you have questions, want to get pre-approved, or need help evaluating a deal, make sure you’re working with someone who explains this clearly and protects your money.

I am licensed in all 50 states and would love to do your mortgage. Call me at (786) 933-2077

Have mortgage questions? Pick a time that works best for you here https://calendly.com/jennifer-beeston 

Ready to get preapproved? www.zerostressmortgage.com