Common Misconceptions Among Buyers

Reblogger Michele Reneau
Real Estate Agent with Certified Staging Professional (CSP) Elite Instructor

Colleen McConnell wrote a great post about Common Misconception Among Buyers. If you have any questions about the buying process, please don't hesitate to call for a FREE no obligation consultation to answer all your questions. We would be honored to assist you in your home search.

Original content by Colleen McConnell

Misconception: confused clientIf you pay list price, you're paying too much.

If you don't know what the current market value is for homes in the area and whether the market is appreciating or depreciating, you don't know what a fair price is and you're likely to miss out on a great deal by trying to low ball a house that's already priced well.

If the house meets your goals, is within your budget, and is priced competitively, it's a bargain and you should make a strong offer. Get assistance from a professional to help you recognize a good deal and grab it before it's gone.

 Misconception: Foreclosures and short sales are the best buys

Many buyers find out the hard way that foreclosures and short sales are full of headaches, may need extensive repairs, require great patience over an extended period, often don't have the criteria that's most important to you, and may never close. 

Short sales abound in Tallahassee and many people are starting to avoid them because the pain isn't worth the gain.  Foreclosures can be less troublesome, but often in poor condition with challenges that may take longer than normal to resolve.  Market prices have corrected in many places, including Tallahassee, and it's possible to find great deals in homes that are priced like short sales, but don't have the headaches.

Misconception You get a better price if you buy directly from the owner.

Bargain hunters sometimes avoid Realtors, thinking that they will get a better price if they buy directly from a FSBO.  Meanwhile, the sellers are also trying to save on the commission, so they're not getting expert advice either and often price their homes above market value. 

The end result is often that a buyer pays too much or the FSBO is unable to get the house sold. A savvy Realtor working on the buyer's behalf, armed with market data and great negotiation skills, is much more likely to get a great deal than buyers can by negotiating for themselves.

If you're buying a house, it's a great idea to find a good Realtor and listen to their advice.

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Rainmaker
389,044
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL

Great post on misconceptions-I just had a buyer who missed out on the home of his dreams by putting in a low ball offer wouldn't listen to the advice of the Realtor.

Apr 07, 2010 11:59 AM #1
Rainer
75,337
Steve McCoole
Mortgage Alliance Group - San Diego, CA - NMLS#305667 - San Diego, CA

With as long as some lenders take to approve them, I can't imagine sometimes how buyers hang in there for a short sale.

Apr 07, 2010 12:03 PM #2
Rainmaker
239,051
Matt Grohe
RE/MAX Real Estate Concepts - Des Moines, IA
RE/MAX Des Moines

Michele: This post is spot on. I always tell buyers to not get too hung up on list prices and instead look for value. Foreclosures can need so much work that they end up being WAY over market value.

Apr 07, 2010 08:20 PM #3
Rainmaker
131,339
Michele Reneau
Certified Staging Professional (CSP) Elite Instructor - Summerville, SC
Realtor, GRI ~ Charleston, SC Relocation Experts Team

Pat-I hope your buyer learned a lesson and this won't happen the next time around.

Steve-If the deal is worth it, I can understand, but it definitely requires A LOT of patience. The sad part is that we have had some deals where the bank wouldn't approve the sale after the buyer waited months and months.

Matt-I can't tell you how many times I've heard after the fact that buying a foreclosure that needed a bunch of work was MORE expensive than buying something in good condition.

Apr 10, 2010 05:25 AM #4
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Rainmaker
131,339

Michele Reneau

Realtor, GRI ~ Charleston, SC Relocation Experts Team
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