I was reading a blog entry by Kristal Kraft today entitled You Can't take the truth.  It got me thinking about how some buyers have completely unrealistic expectations of the market. 

There's the "low baller"...this person wants to offer 25% less than asking price regardless of how accurately priced a property is.... But my personal favorite is the person who buys into the "Urban Real Estate Myth".  A term I coined after I've hear a few too many people tell me stories about their "friend's friend" who got this great deal. 

We've all been there.  The truth is that only a VERY small segment of the homes on the market are priced far below market value.  And the truth is the majority of these homes are in desperate need of an overhauling. 

I'm not suggesting that people can't make money flipping real estate.  Many, many people are very successful with it.  I'm just pointing out that the average homeowner, who pays a contractor for their home improvements, will ultimately end up having just as much invested in their home as their neighbors.