Did You Overpay for Your House? 5 States Where You’ll Likely Get Your Money Back

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Your house was a hot commodity, but you won the bidding war. There’s a good chance you had to go over your budget or at least make sacrifices on the home. Now you’re wondering, was it worth it?

It’s understandable if you’re feeling a little nervous. Buying a home is the largest investment most people ever make. It’s important to know where, and also how, you can get the most out of your home purchase.

5 States With Great Real Estate Returns

If you’re considering putting your house back on the market because you feel like you made a bad investment, that’s probably not the best move. While it may feel like you paid too much for the property right now, it will likely still pay you back over time.

Here are some examples of states where you may pay a premium for a home, but you will also make your money back: 

• North Carolina: The average home value is $320,716 and housing prices are 14% lower than the national median price. It also generally has low property taxes which gives you a chance to save and pay back your loan faster.
• Nevada: The average home value is $418,583 and thanks to the state’s fast-growing economy it has home prices rising over 6% year-over-year which means your property will appreciate. 
• Iowa: The average home value is $207,215 which is one of the reasons Iowa is ranked among the top 10 most affordable states in the U.S. with housing prices at just 75% of the countrywide median home price.
• Pennsylvania: The average home value is $254,802 and Pennsylvania has great programs for first-time homebuyers, including the HOMEstead program, which can offer up to $10,000 in down payment assistance.
• Ohio: The average home value is around $216,115 which makes Ohio both affordable and a good opportunity to grow your investment. The cost-of-living index is 7% lower than the national COL which also helps you stick to your savings budget.

Find Out: What Salary Single People Need To Live Comfortably in 100 Major US Cities

Getting the Most Out of Your Home Investment

GOBankingRates spoke with two experts to find out what you have to gain from the purchase of your home — even if the initial price you paid was on the higher side. Here’s a look at four benefits you’ll likely reap from your decision to purchase this home.

Get a Return on Investment (ROI)

Not all investments appreciate in value over time, but Maureen McDermut, a real estate agent with Sotheby’s International Realty, based in Santa Barbara, Californiasaid homes typically do.

“The more important note is that the home value appreciation has continued to outpace mortgage rate increases, which means an investment in real estate now will show an ROI when it comes time to sell the home in a few years,” she said.

Chris Birk, the director of education for Veterans United Home Loans agreed.

“Homeownership can also serve as a hedge against inflation,” he said. “Generally, as prices rise, so does the value of the property, especially in expensive markets.”

However, he also noted that rising prices and equity gains aren’t guaranteed with the purchase of real estate.

“Buying a home is a personal financial decision with unique considerations for every consumer,” he said. “Over the last few decades, owning a home has proved to be a solid investment when it comes to building equity.”

Nonetheless, because everyone’s situation is different, Birk suggested it’s best to discuss your options with a trusted lender.

Build Equity

When you own a home, at least part of your monthly mortgage allows you to build equity in the property, whereas a rent check goes entirely to your landlord.

“The unique nature of a home as an investment also gives those that do buy a home this year the opportunity to build equity over time, which opens up other financial opportunities,” McDermut said.

If you eventually decide to sell, this could majorly pay off, as Birk noted that potential sale prices tend to appreciate with property values

“This equity accumulation can be particularly rapid in expensive markets, where home values often rise,” he said. “The increase in equity can provide access to better financing options such as home equity loans or other refinancing options that could help homeowners make home improvements or even consolidate high-interest debts.”

Enjoy Financial Predictability

“In today’s economic climate, would-be buyers are factoring in the rising cost of rent,” Birk said. “These substantial, annual increases can put a financial strain on renters, especially in more expensive markets.”

However, he added that buying a home with a fixed-rate mortgage allows you to know exactly how much you’ll owe for housing each month, until the loan is paid off.

“Homeowners can secure their housing costs for the life of their loan, eliminating the uncertainty of escalating rental prices — which helps them to save money long-term,” he said.

“This allows homeowners to budget effectively, knowing their principal and interest payments will stay the same, regardless of market changes.”

Gain Financial Security

Even in an expensive market, Birk said buying a home still comes with advantages.

“Despite fluctuations common to other investments, such as stocks, property in these markets tend to maintain its value — even during economic downturns,” he said. “This can provide homeowners with a sense of financial security.”

As long as you keep up with your mortgage payments, no one can take your home away, which offers a feeling of contentment.

Final Take To GO

Maybe you used most of your cash for a large down payment or perhaps you’re nervous you seriously overestimated the value of your house. These concerns are understandable, as buying a home is always at least somewhat of a gamble.

However, there’s a very good chance this investment will come with a serious payoff. Hopefully, the feedback from the experts above eased your mind and helped you realize what a smart move you made by purchasing your home.

Instead of stressing about what your property value will be years down the road, keep making your mortgage payments on time and putting money aside in your emergency fund. And don’t forget to sit back, relax and enjoy the home you loved so much that you decided to pay top-dollar for it.

Caitlyn Moorhead contributed to the reporting for this article.

Editor’s note: Data is accurate as of Jan. 1, 2025 and is subject to change.

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