Yes and no. In general when you buy a property you have just established the market. your purchase price is the best and most current indication of value for this particular property. This transaction also reflects on the value of other properties in that area. There are certain circumstances under which you can buy property below market value.
► A property is fresh on the market and the listing agent has misjudged the value of the property. A good REALTORŪ is able to spot these occasions. If you are well prepared and able to act fast you might be able to secure this property. If the property has been on the market for several weeks it is unlikely that it is underpriced since a lot of potential buyers will have looked at the property already.
► The seller might need to sell quickly and therefore is willing to accept a price less than full market value. Again time is of the essence. Cash buyers or fre-qualified buyers stand a chance to gain from their preparedness.
► Foreclosure sales are an example of a potential distressed sale. But by no means are all foreclosures bargains, do your homework or let a real estate agent assist you.
► If right after you put a property under contract the seller receives one or more back-up offers at potentially even higher prices you know that the market would have supported a higher price. You have just secured a property below its full market value.
► A property has been listed a too high a price and has been offered for a considerable time. All real estate agents know about the property and all buyers in the market have shown no interest at the given price. The lack of activity will have a negative influence on the state of mind of the seller. It must we worth much less than I put it on the market for. This is the time for bargain hunting. The seller might entertain a low-ball offer out of desperation. Had he priced the property properly in the first place it would probably have sold for a higher price. In effect you are able to buy such a property below its market value.
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