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An Urban Real Estate Myth

By
Real Estate Agent with Max Broock Realtors

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. 

The truth is a "great deal" is subjective.   
Kristal Kraft
Novella Real Estate - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

Sara, well stated indeed! Buyers and sellers too think the "benchmark" for value is the price.  sometimes the price is right, sometimes its pretty far from the actual value.

Homes that are dated or need basic components replaced should be repaired or priced with the repairs in mind.

The consumer has an assumption that the basic components in a home should be working or at least work for a specific time.

Aug 22, 2006 02:50 PM
Maureen Francis
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel
I learned this one myself the hard way.  Why did I buy a home that needed a new kitchen, bath, etc. when I could have had something already done for the same amount of money and much less aggravation?  Because I was a first time home buyer with a rookie agent. ME!
Aug 22, 2006 03:09 PM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Sara, "Urban Real Estate Myth" I love it. In every price range there is this fantasy home that has everything and is below market price.

I'm finding that buyers who have lived through a major renovation in their home once are going for all the ammenities,  features and the mint condition of new construction on their next purchase rather then the charm and character of the "fixer upper"

Aug 22, 2006 04:06 PM
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate
I don't remember this if I read it b4 but Mitchell Hall recommended it elsewhere..."Urban Real Estate Myth" I love it.
Dec 30, 2006 08:31 PM
Suzanne Willems
Willems Realtors - Saint John, IN
Yes, I agree. Buyers hear even more now about buyers market and sometimes think they can offer an unrealistic bid that does not pay off the sellers mortgage.
Apr 08, 2007 01:43 PM