A survey shows that home buyers may find it hard to trust what their real estate agents are trying to say.
Brokers and real estate agents are known to use euphemisms to attract home buyers. They can charm clients into thinking that an outdated home is a charming abode or a tiny apartment to feel cozy. And let's not forget the use of words such as "bargain," "under-valued," and "good deal." Based on the 100 US metropolitan cities, these mean absolutely nothing, a report from Bloomberg said.
A new research from Trulia was conducted using properties that have been labelled as good deals comparing these for homes with the same size, location and age. The research showed that in San Francisco, Atlanta, and 43 other key cities, homes listed to have good values were not cheaper or has any other difference compared to homes that were not labelled as a "deal."
A quick check of homes that were advertised as great deals in Dayton, Ohio, were 20 percent cheaper than homes that were in the same zip code. This was after tweaking the number of bedrooms and baths.
Aside from these findings, the study also tells the average discount in different metro cities without considering the quality of amenities or location the location within a zip code. It could therefore be concluded that a bargain may be from the eye of the home buyer.
However, it is not entirely true that you cannot consider everything that you find in a property listing. In markets with a large number of homes for sale, sellers should offer discounts especially those properties with some kind of defect.
And even though sellers aren't offering discounts it does not mean they are advertising them. In 21 out of the 45 cities in where bargain homes were offered, at least 1 percent of sellers promised a good deal. In 100 largest US metros about 1 percent of listings that were advertised as a bargain in 2015 were down from 1.5 percent in 2011 according to Trulia.