Think that home’s a steal? Think again
It is a commonplace these days to see the word “Bargain” in a listing to attract attention and to bait potential home buyers. Recent studies have shown that over one-third of the biggest housing markets in the nation that offer “bargain” in their home listings have no form of savings tied to it.
A Not-So-Great Deal
A recent analysis of home listings which was carried out by Trulia, that explored the nation’s top 100 biggest markets, analyzed featured listings with terms like “deal,” “bargain” or other terms that indicates money saving shows that these terms were widely used, but just a select few actually worked in compliance with these terms.
Based on recent reports, up to 35 markets had “bargain” listings which equaled the market value, or surpassed it in other cases.
A simple instance can be seen in the case of Cape Coral, Florida. Despite the fact that over 6 percent of the total listings in the city are referred to as “great deals,” just 36.5 percent are really listed lower than the market value. On average, listings that come in the guise of “bargains” are 3.5 percent more than the home estimated market value.
The is also true in Phoenix. Similar to the above mentioned, the supposed bargain listings are way more expensive than their estimated value. On average, a Phoenix “bargain” home costs 1.1 percent higher than what it was estimated to be.
Warn by Alexandra Lee, housing data analyst at Trulia, “Same as to Black Friday discounts, listings are often promoted with the word “bargain” to attract potential buyers. But as is the case in Black Friday discount sales, once you decide to shop, you will probably spend beyond your budget.”
Where Are the Best Bargains?
Are you really in search of a deal? Camden, New Jersey offers incredible steals with regards to pricing. Just around 7 percent of all listings are put out as bargains, and about 78 percent of those listings are in fact lower than their market value. Buyers can scrape up to 21.1 percent or $43,443 in savings.
Another place to find the best deals is Newark. They offer beyond 11 percent on any given day. Cities like Pennsylvania, Pittsburgh and Allentown buyers can save up to 11.2 percent and 11.2 percent respectively through “bargains.”
San Jose and San Francisco is amongst the cities with the most accurate bargain listings. In San Jose, a whopping 86.2 percent of their total bargain listings cost lower than their estimated value.