Analyzing “The Best Deal in Town”
Headlines for real estate ads are usually structured as catchy and meant to make a statement from the headline alone. Since it is competing with several other property ads, a lot of Realtors can be very creative in writing their headlines.
Here are some examples of catchy headlines I saw in the real estate classified ads section of the REIClub.com:
- Selling Below Market!
- Million Dollars in Equity Here!
- 2 Properties 1 Price
- Big Profit in New Construction: Buildable Lot for Sale
- Steal My Atlantic Beach, Nc Beach House This Week
Just from the headline alone, a potential buyer is fascinated to explore the details of the property. Some properties could be real deal makers, while others are just being marketed creatively. Meaning… buyer beware. Things are not what they really are. If it is too good to be true, then it must be. An investor or any property buyer should always analyze the validity of what the headline claims.
Joshua Dorkin of BiggerPockets.com had a great analysis of a property advertised as "the best deal in town". You can learn from his analysis that the property is not really the best deal, but more of a loser property. In several computations he demonstrated that the property has a negative return. It is a good read, specially for amateur investors who can easily get persuaded into buying the worst deal as the best deal in town.
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POSTED IN: Insights and Commentaries
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