Why Most Buyers Pay a Premium for No Real Reason

What “Premium” Really Means in Real Estate

Premium does not simply mean:

• high price

• good area

• attractive photos

A real premium exists only when you pay more because the property:

• has characteristics that cannot be replicated

• preserves its advantage over time

• will remain easier to sell or rent in the future

The problem is that most buyers pay premium
for things that do not last.

1. Paying a Premium for Aesthetics That Can Be Copied

A freshly renovated apartment with:

• a modern kitchen

• new bathrooms

• stylish lighting

creates the illusion of value.

But:

• finishes age

• trends fade

• design becomes outdated

Aesthetics are not a permanent competitive advantage.

When buyers pay a premium for a renovation that could be done in almost any apartment,
they pay twice for something that doesn’t compound.

2. Paying a Premium Out of Fear of Missing Out

One of the most expensive mistakes buyers make:

“If I don’t buy it now, someone else will.”

Fear creates:

• urgency

• emotional decisions

• inflated offers

In reality:

• most properties are not unique

• substitutes always exist

• premiums paid out of fear are never recovered

This behavior connects directly to what we analyzed in the article
“The Moment You Should Stop Thinking and Make an Offer” — hesitation and panic often cost more than rational timing.

3. Paying a Premium Without Understanding the Area’s Ceiling

Every area has:

• a price range

• a specific buyer profile

• a ceiling of what the market absorbs

When buyers pay:

• above recent transactions

• without a clear structural reason

• assuming “prices will keep going up”

they are no longer buying property —
they are betting on a scenario.

And scenarios don’t guarantee exits.

4. Paying a Premium for Square Meters That Don’t Work

Two apartments with:

• the same size

• the same area

• the same price

are not equally valuable.

Yet many buyers pay premium for:

• extra square meters that add no functionality

• inefficient layouts

• dark or poorly oriented spaces

Square meters alone are not value.
Functionality is.

5. Paying a Premium While Ignoring the Building Itself

The apartment may look perfect.
The building may not.

Common hidden issues:

• unpaid common expenses

• poor maintenance

• gradual degradation of shared areas

These factors:

• affect daily life

• reduce resale liquidity

• increase long-term cost

Paying premium inside a problematic building
means paying for something that works against you.

This connects directly with what we examined in
“The Trap of High Returns in Real Estate” — perceived upside often hides structural risk.

When Paying a Premium Does Make Sense

A premium is justified only when you pay for:

• location that cannot be replicated

• micro-location advantages (quiet street, orientation, light)

• a functional layout

• a building that ages well

• long-term attractiveness to buyers and tenants

Not for:

• fresh paint

• trends

• pressure

• fear

The Role of Poli Real Estate

At Poli Real Estate, the goal is never to “win” a property.

The goal is:

• to avoid paying unjustified premiums

• to understand where paying more actually protects value

• and where walking away is the smartest move

Because most real estate mistakes
don’t appear at signing —
they appear at resale.

Final Takeaway

Most buyers don’t lose money because they bought an expensive property.
They lose money because they paid a premium for the wrong reasons.

The right premium:

• protects value

• reduces risk

• improves liquidity

The wrong premium:

• feels invisible at first

• but gets paid later

And that distinction never appears in a listing.

If you aim to avoid paying unnecessary premiums and focus on real value, submit your investment criteria at the contact button that follows.