Home purchases can go south when buyers are ill advised by uninformed realtors. I run into this all the time here in The Glen (in Glenview IL) where there are ten unique neighborhoods with different types of homes, different sizes, and different price points. This is especially true for attached homes such as townhomes, condos, and duplexes because there typically are multiple models within a development that have their own unique characteristics and price histories.
The Regency at the Glen development is a prime example. Regency offers 104 townhomes, 38 duplexes, and two single family homes. There are four models of townhomes with sizes ranging from 1523 square feet to 1835 square feet. The beautiful duplexes come in two basic models, and like the townhomes there are many upgrades that add value. I was recently involved in a deal in this development where I represented a townhome seller. Another realtor brought a potential buyer to the home, and an offer was made. The offer was extremely low, but the buyer and his agent didn’t think so. Why? Because the realtor found “comps” (the prices of recent sales of supposedly similar Regency homes) that were incorrect. The realtor was not intimately familiar with that market and didn’t realize that he was finding comps for the wrong model which was much smaller than my listed property. The buyer was ill advised, being told that the home should sell for $X. So his expectation was set at an unrealistically low price. I had to educate the buyer’s realtor about the various models, their sizes, their upgrades, and price histories.
This happens frequently in Tower Crossing at the Glen as well where there are six basic townhome models and significant variations even within each model; and some of the upgrades make material differences in price. For instance some models have expensive elevators while others do not. Tower Crossing’s homes vary in size from 3037 square feet to 4105 square feet…a significant difference. Home prices range, based on model and upgrades, between the low $600’s to nearly $900,000. So for a buyer to be properly advised, the realtor has to understand Tower Crossing intimately.
The bottom line is this: If you are buying a home be sure to find a realtor who is very, very familiar with the specific neighborhoods in which you are looking at homes. If you choose the wrong one, you may be making a costly mistake.
Margaret Ludemann, @properties Realtor