Real estate. It’s an interesting thing. We all need it in some form or another whether it’s renting or owning. Everyone needs a home. But real estate as an industry goes beyond the end result which is to find a place to live. In the home buying process, there are three major things to consider.
You’ve probably heard of the 3 rules of real estate before.
Location location, location.
Some things never change. This rule still applies in the today’s market because location of real estate is very important. Where you buy can influence the cost you will pay as well as potential resale & not to mention the lifestyle you will live based on the location of the home. We are fortunate to live in the age of technology, where we have instant information at our finger tips. Whether it’s Zillow, Google or even our neighbor. Gathering information & opinions about where to find the perfect home, how to go about it & what it’s going to cost is available to any of us with a click of a button. Information overload commences.
The rules of Real Estate have evolved because of technology & with innovation comes a new set of strategies. Decisions become harder to make unless you’re armed with the right tools to help break down the information. The question remains, what are the 3 rules of Real Estate in today’s market? Simple. Location. Condition. Price.
Whatever your budget may be you are faced with these three rules. Location is the first rule on the list because its the original rule.
When it comes to location, it’s important to know your surroundings. These are things you can not change. Things like schools & traffic. Some other things might come into play regarding location are topography & natural elements which could affect the insurability of the property. The location of the home can not change so be sure to fully research before making your decision.
Sometimes its relevant to pay a premium for location because of its desirability but be sure not to forget the second rule before making your decision.
Homes in great condition are worth more. Period. They feel & look good. When a home has been properly maintained & upgraded, it will draw a lot of attention & typically will command a higher dollar amount. That’s not to say that all improvements will have a dollar for dollar return on the investment. Just because a property has $100,000 worth of upgrades doesn’t mean it’s worth $100,000 more in value. However, things like a view or a corner lot can affect the value (first rule – location) but a home with all the bells & whistles will outshine a home that does not.
Homes that aren’t in a desirable location &/or need repairs tend to reflect a lack of value which brings us to the last rule:
Price is paramount. It creates interest or a lack thereof. It’s important to pay attention to price especially when you bring the first two rules into consideration because it will affect the value. If a home is in a desirable location in excellent condition & competitively priced, it will sell for top dollar, in any market. But if a home lacks location & condition, the price will ultimately be the driving force. Price is a sensitive rule because buyers want a deal & sellers want to get top dollar. At the end of the day, value is what’s most important to both parties.
Is it worth it to you if the home you’re looking for is in the location & condition you desire? If so, then be prepared to pay top dollar. But if you’re willing to comprise on the location or condition then the chances of getting a deal are in your favor.
This is just the tip of the real estate iceberg.
There are so many things to consider when buying or selling a home. Using these three rules will help you in your decision making process but that’s just the beginning. Once you’ve made the decision, then you must apply the 4th rule, hire the right agent.
My next post will dive deeper into how to find the right agent & what that qualities to look for before hiring them to help you with one of the most expensive purchases of your life.