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.

If you know of anyone who's thinking about buying or selling a home in Tallahassee, I'll be happy to give them the information and guidance they need to make a smart move.

Colleen McConnell, CRS, Broker-Associate
www.Tallyhouse.com
2344 Centerville Rd, Suite 105, Tallahassee, FL 32308

Advanced Realty

 
Post is included in group: Addicted to Active Rain
Post is included in group: Advice for Buyers
Post is included in group: Almost Anything Goes
Post is included in group: Florida Realtor® Network
Post is included in group: Realtors®

84 Comments on Common Misconceptions Among Buyers

20 Most Recent Comments Displayed Show All

APR
07
2010

I'll ditto Maris and say "Amen!" Keep preaching it girl!
11:53pm • #67
APR
08
2010
118,587 Points

Buyers also seem to think that they have to pay less than list price, no matter how much you educate them on the market.  I had a buyer last year who lost two GREAT homes (both underpriced due to the seller's circumstances) and he wanted me to low ball them both.  I did it on the first home because it had been on the market forever thinking we might have a chance.  We didn't.  After losing it, he was shocked to find out that the people who did buy the house bought it for $1,000 under list price!  Not wanting to give up on him, because we'd already seen every house in the area, we tried again - this time on a foreclosure.  Again, he didn't want to believe me that the banks are not just out there trying to lose money and he insisted on low balling one more time.  Again, in my determination to get him in a house which is what he said he wanted, we tried again.  He lost that one to a more than full price offer.  I finally had to let him go.  It was very apparent he didn't want to learn and there was only such much time I could waste.  Last I heard, he's renting!  On top of losing two good houses, the listing agents think we aren't educating our buyers - in reality, some buyers can't or don't want to be educated. 
6:10am • #68
812,963 Points 243 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

I shake my head when neophyte buyers tell me they want to buy a short sale or REO. We are talking about distressed housing in dubious condition and a sales process that taxes even the savviest among us. 
6:17am • #69
587,699 Points 12 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Colleen.. You are absolutely correct with these points.  I believe all buyers should read this before going out to look at homes. 

What is sad is that most buyers feel *no matter what the home is listed at* that they should offer less otherwise they are NOT getting a deal.  If their realtor researches this, they would know in some cases that the home is already under value.

 
6:29am • #70
122,035 Points

Great advice! You are a professional who knows what they are talking about.

Thanks for the post.
8:27am • #71
605,535 Points 46 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Perfectly said. Now I have got to figure out how to write a similar blog post to my spere without copying this beauty!
9:37am • #72
297,376 Points 8 Featured Posts

All great points and well written. In Toronto, if you're paying the asking price you're probably getting a deal. Here agents are still pricing below market value to generate multiple offers.

Whether you're in a slow or hot real estate market, buyers and sellers need to do their own homework to get a sense of what sells at what prices. The right agent can really help, but knowing you've got the "right" agent is the hard part for most people.
12:03pm • #73
226,518 Points 9 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Very true- but one misconection you might add on the buyer side is that the don't need an agent until the last minute.  So many younger buyers are so Internet savvy and see how much data is available to them that the forget how important the role of a good agent is.
5:25pm • #74
159,907 Points 1 Featured Post Attended Rain Camp

Colleen,

Wish I'd said that!  Great post!
6:55pm • #75

My first thought when I read your title was, "There are only 3?"  LOL!  Thanks for addressing these!  I might re-blog you if you don't mind.
8:04pm • #76
APR
09
2010
333,351 Points 4 Featured Posts

Isn't it amazing that a REALTOR can save people a ton of headaches and money? lol

Ty
2:01pm • #77
Outside Blog

These are true misconceptions. 1. The price of a home should be it’s true market value – a good Realtor will treat it as an Appraiser would and establish it’s true market value and then stick to it. I’m sorry to say, I have worked with Realtors who always make an offer for 15% of the asking price – for no reason at all. In those cases, I have recommended they go back and do the homework to make a more reasonable offer and even offer to show them how we established the price. 2. Short sales and Foreclosures are what everyone is hearing about and think they are a bargain – they don’t even know sometimes what they are buying. The builders are pricing some of there homes competitively with the Short Sales and they are brand new with a warranty. A better bet, especially for a first time buyer. 3. For Sale by Owners are mostly homeowners who don’t like the truth of what their homes value is currently. So, they try it themselves for more than the market value. Even if they price it right, the first thing a buyer will do is deduct the real estate commission from their offer. No one really wins in that case.

Karen Palmer, Sales Manager
2:06pm • #78
APR
10
2010
1 Featured Post

Great blog.  Thanks.  Good read for this beautiful Saturday. And, oh so true. 
12:19pm • #79
1 Featured Post

Great blog.  Thanks.  Good read for this beautiful Saturday. And, oh so true. 
12:19pm • #80

Well written. Great advice.
5:41pm • #81
APR
17
2010
180,712 Points 2 Featured Posts Attended Rain Camp Called Shot Master

COLLEEN: You have posted a well written blog about the misconceptions that buyers have. I have told my potential clients that I will not low ball any property and if this is what they want to do then I am not the right agent for them. I tell them that I will do the comps and tell then things they may not want to hear, but isn't that why they hire me to get my expert advice. I tell them there will be times that I will tell them the listed price is a fair market price and that they should pay the price or lose the property. Some will do and other will not.
8:10pm • #82
APR
19
2010
Localism Sponsor

Great post and great comments! All true.
11:12pm • #83
APR
21
2010
129,539 Points

Great post.  My last closing was on a home I had listed where no other home in the subdivision had sold in the last 2 years that was not a foreclosure.  We were able to do it because the value was in this home, move in and start living, not fix it up and move in while continuing to repair.  The neighbors liked the fact it sold resale and it seems foreclosure prices are even up about 35% in this neighborhood in the last few months.  People need Realtors to explain that value is not just the cheapest price.
6:25am • #84
MAY
23
2010
236,125 Points 5 Featured Posts Called Shot Master

Well said Colleen. I may borrow some of your points. Thanks.
7:11pm • #85
JUL
07
2010
147,546 Points 6 Featured Posts Attended Rain Camp Called Shot Master

There are way too many people out there that still have a misconception on how much time and energy goes into being successful and how we are constantly on a roller coaster ride.  I don't think John Q. Public will ever understand unless they have been there and done that.

 
4:02am • #86

20 Most Recent Comments Displayed Show All


What does the graphic say?
Leave a response…

(optional)
Spam Prevention: