Oh My Goodness! I can't tell you how many times I have heard this same tale... but my friend who does mortgages, or my parents, or my friend the investor says... REALLY? You hire a professional to do the job and advise you on the details from a real estate perspective. And the market your parents bought their home in (no disrespect intended) was/is not the same today!
Chris Ann has nailed it here! How much are you really saving? And who should you listen to? Your Realtor, of course! Please comment over on Chris Ann's blog as she deserves all the credit
When It Comes to Real Estate, Your Friends May be Embellishing the Truth
I can not tell you how many times, as a licensed, professional real estate agent, I have run into stories about the awesome deal my client's friend got. The tales are like fish stories my Dad used to tell. You know, the story in which the mega fish that got away changes six inches to a foot in length from one retelling to the next. That's what the deal you are recounting that your friend got sounds like to me. Unfortunately for your friend, who wants to be the most amazing negotiator ever when they recount their tale of real estate prowess, the facts of real estate transactions are there in the tax records for the world to know.
That home your friend bought for $600K that was listed for $1 Million was indeed listed for $1 Million two years prior. The market tanked and the home lowered its price and lowered its price as values came down. Know how much it was listed for and what your friend paid? It was listed for $725K and your friend got it for $699K. Was it worth $1 Million when your friend bought it? I'm afraid not. It probably wasn't worth $1 Million when it was initially listed years ago. The true market value at the time your friend bought? $$700K. Congratulations. They saved $1K!
What about the friend the bought a foreclosure for $150K? Eh. Not so much. They paid $178K. Why did they tell you they paid $150K. I don't know. Pride? Turns out that the foreclosure they paid that much for was probably only worth $160K, given the amount of work you say they put into it. I suppose they've figured that out and now what to adjust reality to make them look better.
If you've hired a licensed, professional real estate agent to help you navigate the market, TRUST THEM. They must hold a license to do their job. They are ethically bound to do what's right by you. Your friend can lie to you up one side and down the other. Sure what they are telling you sounds good, but it may have no factual basis at all. And every real estate agent knows that facts and figures are what matter in real estate, not fish stories.
Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155. To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com. Or you can visit her website: www.nvarealestate.net.
Header is a combination of photos from the Bristow, Gainesville & Haymarket areas, taken by Chris Ann Cleland.
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Linda K. Mayer, Realtor, SRES
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