I have been in the real estate/mortgage business for several years. The pricing of a preowned home is determined by comparables (homes that are similar in size with the same attributes and have sold in the last three months.) By law, you can not charge more for your home based on personal wants. It must be in line with the pricing of homes within your area. In 2008, the real estate market crashed because flippers and investors were misleading buyers about the actual value of the homes.
When you are purchasing a home do your research. Find as many similar homes in your area that are on the market or have recently sold. Before buying, place a clause in your contract that states the property must be appraised by a licensed appraiser to reflect the actual value of the home.
Many people are emotional buyers. Flippers and investors use this and persuade the buyer to pay too much for the home. There are laws against this. Know your rights!
I am in the market for a new home in the villages. Unfortunately, I have seen inconsistent pricing. Some homes, extremely similar to others, have a price tag of $50,000 or more. I researched a home I was interested in and found it was overpriced by $100,000. I am still in the market and probably will be for sometime.
Throughout my buying process, I have been outbidded by someone who lives out of state and are paying cash for the home. A licensed appraiser is probably not requested in these deals. I let the homes go and do not bid higher. There are so many homes available that I do not see the urgency. No, I am not cheap! I just feel more secure in a home that will hold its value and provide me with equity in a few years. No one wants to lose money on a home purchase!
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