Top Tip When Shopping Tallahassee Homes For Sale
I have noticed a common error being made by newcomers and experienced homebuyers alike when searching Tallahassee homes for sale, and I want to suggest a solution that will save many of you from heartache and financial loss.
You see, the housing market made a turn in 2008 to a place where no current buyers or real estate agents had ever been. This new market, where distressed properties were no longer a tiny niche but rather a main staple of the houses available, made the process of determining value a rather complicated affair.
There have been many homebuyers in the past few years that paid too much for a home, because they did not have a solid grasp for what the home was worth when they made an offer. My tip will show you how to be a smarter buyer when you shop Tallahassee homes for sale.
How To Value Tallahassee Homes For Sale
When most properties on the market are being sold "arms length," it is fairly easy for anybody to determine home values if they take the time to really study and evaluate the current list of homes for sale in Tallahassee, Florida. But what do you do when 30% of the inventory is short sales, foreclosures, and bank owned properties?
The key is to recognize the discount between the two across similar homes, and make sure that any property acquired includes compensation (to you as the homebuyer) for any work or added effort to purchase a home that is in less than "ready to sell" condition. And here is where my top tip comes in.
My top tip is to either work with a real estate agent that you know is a true expert in home values, or become one yourself through diligent study of the current housing market.
And here's why.
If a home in great shape is worth $300,000, but is being sold as a distressed property and needs $50,000 worth of work, how much should you pay for it?
A simple answer might be something like this:
$300,000 minus $50,000 equals $250,000 ... so paying $250,000 would be paying full market value. This means at $250,000, you would be buying a home, paying full price, and also having to do work to the house (or coordinating work on the house). Are you really saving any money by purchasing this home for $250,000?
Of course, that was the simple answer. An expert in the Tallahassee real estate market will help you determine supply and demand for homes similar to that which you are seeking, and will help you evaluate all Tallahassee homes for sale that fit your needs and desires. The fact is, you might be willing to pay the full $250,000 or even more if the home in question is the best fit for you and your family.
But in most price ranges, homebuyers have enough choices that paying full-value for a distressed home does not make sense. The buyer is getting no discount and is taking on an additional burden of having to improve the property.
We have seen countless examples of people who's primary motivation for buying a home was the fact that "at this price, this home is a steal." But when you factor in the improvements and additional effort needed, they actually paid at or above current market value.
Work with a qualified real estate professional so you have the confidence that you are not overpaying for a home. Understanding the true value of a home in any market requires diligent study of supply and demand, not just a real estate license and a key to get inside the homes.
If you would like to meet with a real estate buyers agent who will protect you and help you get the best deal possible when shopping Tallahassee homes for sale, simply drop me a note and we can get you started on a fun and fulfilling process.
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