BEFORE YOU BUY A HOME KNOW THIS: There are five significant factors that will cost you THOUSANDS unless you purchase a home without even one of the issues noted in this real estate report.
FIRST, what happens IF you, as a home buyer, make a mistake when buying? Below is a short cautionary story of a true home buying nightmare. The facts below apply to whether you are spending $300,000 or $10,000,000 on a home.
A doctor and his family purchased a home for $1.5 million. Eight months after the purchase, the doctor gets a higher job offer, closer to his wife’s family in another city. So the doctor called the real estate agent he originally bought the home with, the agent who had originally told him, “he had gotten a great buy”. So when the doctor asked the agent to “resell the home”, the doctor felt confident he could sell the home quickly because his then agent had shown him all of the 'sold comparables'.
The agent took the listing contract at just $25,000 over the price the buyer had purchased the home for, a minor amount at this price point. The market had gone up in the previous eight months so the number should have generated a quick sale IF the home had been purchased at a fair market price in the first place. Unfortunately, that was not the case. After nine months and TWO significant price drops NO offers came in.
After many long frustrating months, paying a mortgage, utilities, taxes and insurance on an empty home, the owner of the property released the Real estate agent who had helped the doctor buy the Scottsdale home and then hired me. I went through the home and I gave my client the list issues holding back the sale… AND shared why the variables associated with the home DECREASED its value in relation to the higher sold comparables he had originally been shown by the previous real estate agent. I was hired to sell the home, rather than reduce the price of the home any further.
My clients put in a relatively small sum of money towards making some minor improvements that ENHANCED the value of the home and lastly, we staged the home just before photos. The net result was we sold in a very timely manner, much to the seller’s delight. Yes. We sold the home for top of it's value.... but because of the mistake made on the original purchase, the seller LOST thousands. So here is lesson #1 when buying. No matter how many homes you have purchased before, read the below. When we look at homes together we will discuss the plus and minuses of the home and property.
TOP 5 FLAWS to watch out for when buying a home.
Lesson - #1 Improperly understood sales comparables
Don’t rely on the neighborhood sale comps solely or even ‘primarily’ to value a home, unless you have 10 plus years making value adjustments for variables that affect the value of the home. I have 15 plus years and worked with top professionals around the US. I have new and even experienced agents ask me all of the time to fix their calculations. Multiple years of expertise matter.
Lesson - #2 Imperfect Floorplan.
One of the biggest and most understood value issues is Floorplan. It is a huge determination of value. A less than perfect floorplan is going to cost you. Call me to discuss the many floor-plan variables.Plus and minus factors.
Lesson #3 Imperfect Location
The location of the home is hugely important and it's not as simple as you may think. It’s not just the location within the city or community or even the street the home is on within the community. Yes, all of those are critically important to the home's value but so is the orientation of the home, location on the lot. If any of these are off, you will not know until it comes time to sell. Let's talk before then.
Lesson #4 Architectural Style is an 8, not a 10
The architectural style of home; do you know what architectural styles are selling for more than other architectural styles? If you love it but it’s a 7 and not a 10. .. great! But get the discount when you buy.
Lesson #5 Age matters…more than you think.
Even a few years age difference in a home can make a huge difference in value. Do you know the percentage value difference between a home built in 2014 vs 2017?
Lesson # 6 Elevation matters Does the home sit up high on the lot? If not, be prepared to have the effect on the sales price.
I have more home buyer tips and insider secrets for luxury and fine residential home buyers. I am a Realtor specializing in buyer representation in Scottsdale, Paradise Valley and Phoenix
I am available for questions at 480-450-4632 . Michael Chaisson - RL Sotheby's International Realty.