Lowball offer can quite shock the seller and even offend him with too small an amount. Savvy homeowners decided to surprise the sellers and "take revenge" on them for unfair numbers. The real shock of the number of zeros in the sky-high price received its eloquent name, which suits it very well.
❝Sticker Shock (Sticker Shock) – shock from too high a price for an object of real estate.❞
It can arise both because of a deliberately overestimated cost, and because of the banal ignorance of newcomers who decided to take their first steps in the real estate market without even researching it properly. The term Sticker Shock is often found in other areas, but it is in real estate that it is revealed to the full, because here we are talking about really big money. Price shock occurs for several reasons:
- ignorance of the buyer. If you have never been interested in prices per square meter and far from the title bomber, it is clear that the first acquaintance with the market will make your eyes increase in volume to tea saucers in a matter of minutes;
- force of habit If you have previously dealt with the real estate market of another country or even a city, familiar numbers are clearly etched in your memory. The difference in prices even between the capital and the neighboring regions will be quite noticeable, so you should first delve into the question in order to understand whether the value of the object is really overpriced. It may fully correspond to the generally established rules in a specific location, but not to your subjective picture of the market;
- changes in the market. The rise and fall of demand can be quite rapid. Sometimes an investor simply does not keep up with them, so a sudden jump in prices can be a real shock for him. It is also worth considering the economic and political situation in the country, because they directly affect all other areas;
- additional costs. Sticker shock can also occur due to the fact that the buyer did not take into account the additional funds that he will have to attract during the registration and maintenance of his new possessions. In addition to the price itself, it is worth allocating money in advance for taxes, pension and military fees, repairs and insurance.
Sticker shock can cause the buyer to reduce their ambitions and consider another object or to abandon the purchase of real estate altogether.
Example of use:
— I just moved to Kyiv and I got real sticker shock.
— Is the difference in the prices of products so significant?
- No, I'm talking about something else. I thought that I had already collected enough funds for the purchase three-room apartment, and it turned out that I barely had enough one-room enough
- Then take a mortgage and get busy house hacking. This is how you will buy your dream apartment, and you will hardly pay for it out of your own pocket.
We guarantee you only a pleasant shock. Contact our experts to get professional advice and choose one for purchase house, the profit from the transfer of which will appear in your wallet faster than you can click your fingers.
