Price Matters

Price Matters


Price Matters when buying or selling real estate.  It’s a big deal!  It’s important to get it right and important to be a part of the valuation process.  It can be complicated so utilize professionals (YOUR real estate agent, appraisers, etc.) but be involved with the valuation.  Why? Because it’s personal.  That’s right: personal.  When buying a house (or home) there might be details that are important to you.  For example, you might value an extra sleeping room in the basement (I would because I have a bunch of kids) but the appraiser may not “adjust” or credit for any additional value.  With this scenario, the appraised value may be slightly less than your personal value.  That’s OK.  You may have to bring more cash to the closing table but if you’re OK paying a little more for a property – than do it and don’t worry about it.  It’s personal.

The only way for you to understand what you personally value (AKA – your price) is to look at your options: search for properties, look at properties, compare properties.  You need to look at similar or comparable properties (or “comps”) to understand what a $100,000 property compared to a $150,000 property.  Learn the market!  Spend some time driving around and guessing the list prices.  When you narrow down a property that you like (ready to make an offer) ask your real estate agent to provide you with some recent sold comps.  This will give you a better picture of value.  If you were CEO of a billion dollar business you would research all the options and get as much information as possible before you’d make big decision.  So do the same thing!  Treat it like you’re running a business: research, listen to professionals, learn yourself and then YOU make smart choices.  The price is important and the value is always determined by the buyer.


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To read more of Matt Westkot’s real estate tips – click on realBLOG


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