Some home buyers can’t resist shooting themselves in the foot when buying a home. Part of my job as an agent is to tell my buyers what they need to hear and not what they want to hear. I see a lot of situations where buyers miss out on great opportunities because they are too picky or discount problems way to much. If a home needs $5,000 of repairs they inflate it to $15,000 and consequently miss out on what could have been an opportunity. Here is a good story.
There was a short sale listed at $195,000 in need of some work but nothing too extensive. It was a good price at $195,000 but certainly the bank would have taken even a little less. It didn’t sell and eventually went to foreclosure. Our investor purchased it at the sheriff sale (purchased for $172,000) and the repairs added up to around $8,000. Now the house had all new paint, carpet and looked good. With only $8,000 of repairs we were able to resell it for $230,000.
When it was on the market as a short sale buyer’s didn’t recognize a good deal at $195,000 and were inflating the amount of work. Someone could have purchased it for $190,000 or less, invested $8,000 to $10,000 of repairs and owned it for $200,000. Instead we fixed it up and it was purchased for $230,000, which was good for my investor. Buyers were now willing to pay top dollar for the same property improved.
When buying a home, don’t dig in your heels and make emotional decisions. Learn to work with your agent so they can talk you through the choices and recognize a good deal when you see it. These homes can be opportunities because other buyers don’t have the vision, are emotional and shoot themselves in the foot.