Mistake No. 4: Equating 'short sale' with 'deal'
In real estate, a deal is a deal, and the terms "short sale" and "real estate owned," or "REO," are marketing buzzwords designed to lure bargain-hungry buyers, says Matt Joseph, broker and owner of West Avenue Realty in Miami.
"I see buyers running into the trap of buying a foreclosure or short sale thinking they are buying way below market value, when they are really overpaying," Joseph explains.
A good deal is a matter of the property's historic price, current market conditions and the home's features, as well as the buyer's own needs. Weighing all the factors isn't easy. But, Joseph says, buyers dramatically decrease their chances of making emotional mistakes by working with professionals who know the local market.
"The biggest mistake I see are buyers not using Realtors that know the local market," Joseph says. "Trying to find a home on your own is very difficult if you're not familiar with the market on a micro level. (Buyers working alone) may feel like they are receiving a deal, however, they do not get to see all inventory in the price range desired."