Moving to a new city requires a lot of adjustments, so if you're new to the Lexington, Kentucky area, you're going to have to work hard to learn the ins and outs. This is especially important when it comes to property, because property prices will not be the same as they are in the Arlington, TX real estate listings. Each city has its own real estate market. So how will you know whether a price is fair? Here are some tricks you can use no matter where you're looking for a house.
Because real estate is a market, the base definition of a fair price is one that someone is willing to pay. Of course, not everyone thinks the same way. You may be willing to spend much more when you buy a Toronto condo than the next person because you have a larger income. So when you're looking for a house, you need to consult your feelings. Does this house seem worth the asking price? If it doesn't, move on or try to talk the seller down. Don't be pressured into paying what you feel is too much.
You shouldn't rely entirely on your feelings, however, especially if you're new in town. New people tend to have their real estate instincts calibrated to the old Lagrange, NY real estate market where they're from, not to the market in their new city. To get your instincts up to snuff, you need to do some research into the average housing prices in your new city, or hire someone with instincts that are already calibrated (i.e. a real estate agent). At the very least, you should look up what other similar houses in the same neighborhood have sold for so you can get an idea of what others will pay.
For a person who is new in town, consulting an expert is probably the best way to figure out if a home is priced fairly. It is a real estate agent's job to know whether the asking prices on Mississauga condos are too high or too low and how you should play the negotiations. Just make sure when you hire your realtor that you and she see eye to eye on things. She should be interested in helping you more than in making money, otherwise she might try to convince you a high price is fair so she'll get a larger commission.
If you need an independent assessment to cross check against your feelings, research, or your real estate agent's opinion, you can always hire a real estate appraiser. Appraiser's jobs are to come into a home and judge what the market value (i.e. the fair price) of the home should be. Keep in mind though that sometimes appraisals don't take certain things into account, like proximity to Mexico beachfront real estate and other external factors.
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