Sunday, January 22, 2006

More Money Than Sense?

Most people would like to have "More Money Than _________" (fill in the blank); but, "More Money Than Sense" is pretty close to the other old saying, "A Fool And His Money Are Soon Parted"-- neither are very attractive attributes!

In the fast-paced and escalating world of market prices here in the White Mountains of Arizona, and other "hot" areas, another old phrase, "caveat emptor" (let the buyer beware) is taking on ever-increasing importance. Buyers must use good sense, common sense, good judgment, and work with a Good Realtor-- one who will readily identify "flips" and help you avoid the pitfalls of paying too much. A Realtor who can and will be fair and honest with them, explain that what looks good might not be good at all. When the value simply is not there, no matter how attractive the location, the amenities, and that "mountain feel", don't have "more money than sense".

When can a "flip" be a "flop" for the buyers? A good example would be say, an older manufactured home (mobile) on a really pretty lot priced at double or more what it sold for very recently. Most probably the current owner and now seller did buy the property for very close to what it is worth. Now turning and flipping, the price is inflated, bloated,unfinaceable, and still only worth what was recently paid for it. Always, always, ask, how long the current seller has held the property and what they paid for it. You must ask. Although the information is "public" information, it will not necessarily be disclosed to you unless you ask.

Although buyers may (and do) fall in love with one of these attractive money-traps, buyers must use good judgment and realize that there is a tomorrow! That tomorrow should be a good one, not one that is clouded over with a poor investment that may haunt you for years to come. It helps to have Realtors who help you see your way through the "too good to be true" to the "good deal".