Since most buyers are realatively new to the home buying game you will need a reliable agent who knows home values. Be very careful in choosing this agent because most agents just want to get the deal done and really do not care what you pay for a home. They want to move on to another buyer and make another commission. Ask your agent for a complete report on the area where you new home is located, including active listings, expired listings, pending listings, withdrawn listings and sold listings. This should give you a ggod feel for the property. If you are thinking of paying more than the average of the area, that is a red flag, unless the home you like has some obvious extras. I supply all my clients with this info plus my own opinion as to the true value. Being an investor myself, I know when a home is a value and when it is overpriced or in danger of losing value. After I have fully informed my client, it is strickly up to them to listen to or ignore my advice. Either way I do not get upset if they choose to ignore my advice. I know buying a home is very individual and many are not looking for value, just a home that suits them perfectly.