Difficulty of purchasing property in a downtown area (Realtors, sellers, for sale)

[concept_fusion]

What is the difficulty in purchasing real estate in a city with a vibrant downtown, at or even significantly above tax appraisal value? Would most sellers unwilling to sell, given the fact that it would be hard to purchase similar properties ever again? I realize such property rarely goes up for sale, which is why I wonder how most of these deals are done.

[Pfhtex]

I will defer to the great Realtors on this board, but IMO it depends on which downtown area. The level of gentrification, supply and demand, etc., will play into things. Regarding buying (significantly) over tax appraisal, you have to look at comparable sales, and how many people (including you) are willing to pay cash over and above the appraised value.

[middle-aged mom]

Tax appraisal value rarely has anything to do with market values of property.

Properties in vibrant downtown areas are bought and sold all the time.

What area are you talking about?

[NinaN]

Tax appraised value has no correlation to resale value. Get that out of your mind and off the table.

Downtown real estate is always more expensive than other property, unless it's a really bad area with lots of crime. When a property comes on the market, you have to be prepared to be quick and be aggressive on your offer, or someone else will be the proud owner of a new home in downtown and you will still be looking.

People sell for a variety of reasons. Many do worry about finding a replacement, but others simply want or need to move and aren't concerned with finding a replacement home.