Misconception: If 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. Statistics show us that asking price to sale price ration for ACCURATELY priced homes is running about 97-98%. That means the properties that are selling in the current market are priced correctly and selling on average very close to their asking price (and yes - some even higher)
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 which banks and/or short sale homeowners won't or can't afford to do, require great patience over an extended period (short sales can take up to 6 months or more to get a decision from the 3rd party investor), often don't have the criteria that's most important to you, and
may never close.
Unfortunately short sales are plentiful in the Merrimack Valley and Southern New Hampshire markets. Buyers are trending toward skipping short sales them because of the uncertainty of them and even in successful cases the length of time they can take. Foreclosures can be less troublesome, but often in poor condition with challenges that may take longer than normal to resolve. We are expecting another burst of foreclosures in the upcoming months.
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 as a buyers agent, armed with market data and great negotiation skills, is much more likely to get a great deal than buyers can by trying to negotiating for themselves.
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