Afraid you'll pay too much for your next home? Is there a way you can be sure you aren't overpaying for the home of your dreams? There are three simple ways to gain assurance that the price you're paying is a fair one.

First, compare homes. See a selection of homes that meet your requirements. As you do, you'll begin measuring the value offered by each compared to the price asked. It shouldn't take long to eliminate those that are grossly overpriced. They tend to stand out from the rest.

Next, ask a simple question when you see a home which appears to be a good choice. "Has this home been appraised?" If not, ask the real estate agent to provide details about other homes sold in the area. Compare them with the asking price of the home you are considering.

Finally, if you are securing a mortgage, the lender will have the home appraised. If it fails to appraise for the asking price, you should be able to renegotiate the price of have the option of withdrawing from the transaction. Ask the agent about your options if the appraisal comes back low.

Although sellers want to receive the highest price possible for their home, overpriced homes tend to linger unsold on the market. A fair asking price is most likely to attract a full-price offer.