Common Misconceptions Among Buyers

Mortgage and Lending with HomeStar Financial Corporation

While browsing the real estate blogs I ran across this great article from Colleen McConnell of Tallahassee FL about common misconceptions among buyers.  This is a MUST READ for buyers who are contemplating purchasing a home in this market.  Thanks Colleen!


Original content by Retired Notworking

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.

Comments (2)

Chuck Marunde
Sequim & Port Angeles Real Estate - Sequim, WA
Sequim Real Estate Broker

Jeff, great article.  I've been on my little horsey out here saying that the best deals are not necesarily foreclosures, short sales, or FSBOs.  The best prices for some of the best homes in Sequim, Washington are listed homes in the MLS that are not short sales. 

Apr 07, 2010 09:44 AM
Jeff Wilmoth
HomeStar Financial Corporation - Newnan, GA

Agreed Chuck!  Honestly, I don't understand the whole short sale thing and why folks would even gamble their time when most short sales begin with just a sign in the yard and no set price

Apr 07, 2010 09:54 AM