3 Real Estate Myths

1. Foreclosed Property represents a great bargain. When you see a “bargain” foreclosed property for sale, be extremely careful. Check for contingencies, warranties, and rights being sold and adjust accordingly when comparing to other property. Ownership interest and warranties on a bank owned property may not be comparable to the neighboring house. Remember, the previous owner tried to sell this home and failed. The bank and any companies which hold liens on the property will not let the house go unless they can recoup their interest or sell for market value. There are great deals, but you have to do your homework.

2. "I’ll wait for interest rates to drop again." World famous economist and thinkers have trouble forecasting interest rates. This wishful and speculative thinking has made many a purchaser lose precious money. Interest rates are influenced by long run anticipated inflation, investor behavior in the Debt and Equity markets, consumer spending, global markets etc. If you can truly forecast changes in interest rates with any confidence, call me, and we’ll make a billion together.

3. Assuming sellers always inflate their prices by 5%. Sellers are motivated to sell for a wide range of reasons. Some are not motivated to sell and will inflate their asking price by 10% while others are under financial duress and are willing to sell under market value. The key is to understand what your local market will value the property for a typical buyer/seller and ascertain his motivations, as well as yours. Wouldn’t it be foolish to lose a great property at a great price simply because your offer was lower than the already discounted price?

Any questions or for FREE customized Market Reports, automatic email updates on properties that fit your criteria, or Realtor Referrals, please EMAIL ME or call me at 734-478-9270. -Anwell Tsai