Unicorn Hunting: A Cautionary Tale for Homebuyers

DISCLAIMER: No unicorns were harmed in the creation of this blog. Unicorns symbolize rare, magical, and unattainable things, much like the perfect house in a competitive real estate market.

Picture this: a charming couple, inspired by a blend of hope and HGTV daydreams, embarks on a quest to find their dream home. Their journey is fueled by visions of lush gardens, expansive kitchens, and homes brimming with character. Eventually, they spot it – the epitome of HGTV perfection. It seems too good to be true, the ultimate prize.

However, this dream often crashes against the harsh rocks of reality. More affluent buyers or those willing to take on significant debt usually snap up these desirable homes. The couple has stumbled upon a classic pitfall: the allure of the visually stunning and highly sought-after property.

Here’s the twist: these ‘A Grade’ homes attract numerous bids, leaving many potential buyers competing for the same select group of highly sought-after properties. Meanwhile, the ‘B’ and ‘C’ Grade homes, which might need a bit more love and attention, often get less consideration. It may be no surprise, but the ‘A Grade’ home that received “36 offers” is probably going to go for a significant amount over the list price, while the ‘B’ and ‘C’ Grade homes probably only got 1-5 offers on them and most likely went for a lot closer to the list price. The savings here could be substantial, offering the opportunity to invest in renovations and craft an 'A Grade' home tailored to your preferences.

This is why we call it Unicorn Hunting – chasing the rare and elusive, pursuing homes that demand extreme financial sacrifices. It's a strategy that often overlooks the smarter path to building home equity.

The secret? Look for homes with ‘good bones’ – properties that may not be picture-perfect at first glance, but hold tremendous potential. These are the diamonds in the rough that savvy buyers can not only transform into a personal haven, but gain instant equity. By focusing on these homes, you’re not just buying a house; you’re creating value and equity that’s uniquely your own, avoiding the trap of paying a premium for superficial charm.

In the hunt for your dream home, remember: real magic lies in seeing potential where others see imperfection. Choose wisely, and you might just find your own real estate unicorn.