Found an interesting article about outlet malls and how they may not offer "deals" despite their popularity.  For some, a day long trip to an outlet mall is a highly anticipated outing but do they really offer value?  You can read the entire article at : Are Outlet Malls For Suckers?

  I saw some interesting parallels to real estate in Charlotte NC particularly whether short sales and foreclosures are the "outlet malls" of the real estate world.

   The article mentions some defining features of outlet malls. Let's compare to real estate short sales and foreclosures, just for fun:

- Outlet malls are typically located outside urban areas, so time and energy is spent just getting there which breeds the perception and rationale that you can't just walk away empty handed after all that effort.

   With short sales and foreclosures- the process is anything but quick and easy, especially with the "don't call us, we'll call you" short sale process, not to mention the addendums/restrictions/bank dictated (and favored) terms of buying a foreclosure.   Hmmmm, time, energy, effort, (money spent on inspections), it's a lengthy trip and you wouldn't want to walk away empty handed...right?

- At outlet malls, is it REALLY the same quality products you could buy elsewhere, just cheaper?  If material quality is inferior it may last as long.  Or you could think of buying a pair of pants you know are going to have to be tailored or have some flaw versus a pair that may be priced higher but doesn't require alterations. 

   With short sales and foreclosures- They're going to require some attention, what's referred to as "tlc".  Yeah, tlc costs money and it'll come from your pocket.  Buying at a distressed price doesn't put $ in your bank account but YOU will be responsible for any repairs/maintenance issues/even cosmetic work after you buy it.  Cost and price are NOT the same thing.  Price is a one time amount, what it ends up costing you is often overlooked in the thrill of a perceived "deal"...

- Outlet malls frequently advertise "Sale" and "Discount" and those are emotional trigger words used to stimulate and create an impulse to buy.  It MUST be a great deal, just look how much it's been reduced!  (uh huh...)

   With short sales and foreclosures - "under tax value", "price reduced" is the same concept.  IGNORE that, and ask yourself "would I buy this house if it weren't a short sale or a foreclosure"?  Take the "deal " factor out of the equation.  Is it in a neighborhood/location/area of town that you would choose to live in regardless of whether you bought a distressed house or not?

   Buying a short sale or a foreclosure is not the right fit for every buyer, even purely from a time frame or financing standpoint.   Just because a house is a short sale or a foreclosure doesn't automatically mean that it's a phenomenal VALUE.  

   Buying a home in Charlotte NC, whether it's a first house or your next house is about so much more than the price you pay for it at closing.  Go beyond the "deal" mentality and focus on (successfully) buying the right place for you to call home. 

  Just some food for thought, reading that article I did see some interesting parallels to the real estate market and perception of real estate in Charlotte NC these days....

Thanks for reading!
Real estate for home buyers and sellers in Charlotte NC

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Copyright©2009 by Diane McDermott, All Rights Reserved, "Are Short Sales And Foreclosures The Outlet Malls Of The Real Estate World?"