With access to information comes power. That is, if you know what to do with it. One of the most frequent questions we are asked about a property is, “how much did they pay for it?” It doesn’t matter. We have no idea what the history of the sale is. Was it bought as distressed property from an anxious seller? Did the buyer pay top dollar because there were competing offers and they just HAD to have that home (or had been beat out on two or three before getting and accepted offer?).
Even with a flip property, we can’t tell if a coat of paint was slapped on the property or if every system was replaced by a master craftsman (though good marketing should make that apparent). Again, we can’t tell what the circumstances of the purchase were.
The number of times we hear, “They don’t deserve to make that much” is laughable. The market determines what they make. Do we get upset at stock market investors who buy low and sell high???
I need to find a copy of the 60 minutes report on real estate from over the weekend.