When Price is not the Primary Factor for Buying the Right Home
Posted by Bruce Swedal on Thursday, September 17th, 2009 at 12:17am.Make no mistake that price is a critical factor in any home purchase that takes place in metro Denver. Something we see happening however is the obsession with price which some Denver home buyers are developing to the extent that it works in detriment to their own best interests. Price is one factor, but not the only factor to consider when purchasing a home.
A Buyers and Sellers View of Value. Some of the places sellers derive value from the price they feel needs to be achieved for their perceived value while taking into account many upgrades, memories of family moments, and features which separate their home from the rest in the community. Buyers will look to the value they place on their future enjoyment of the property. They dream of what could be without yet having that personal connection to the home.
Factors Affecting Price. Most see location as a pricing factor, though not all agree on where that ideal location is. What is ideal for one can be no deal for others. Some may find the low maintenance of condo living ideal… if they don’t have 4 dogs. Living close to parks can be ideal… if you can put up with the crowds that parks attract. City life can be convenient for children’s activities… if you don’t have horses.
Those who enjoy traveling look for places with low maintenance landscaping. Outdoor recreation aficionados typically enjoy living near public lands. Those with a classic car, boat or other toys look to three car garages. Horse owners look for horse properties.
Factors within Homes Make a Difference. Those who entertain may enjoy a gourmet kitchen. Large families need many bathrooms. Are you a granite person or Formica? Do you like open design or compartmentalized spaces? For those who enjoy the scenery there is nothing like a mountain view. Gardening - RV parking - Fixer uppers?
The best approach in most instances may be to weigh the overall pros and cons of the entire transaction. Ask yourself, if there is a better home available on the market why aren’t you in negotiations for that home.
The answer may be that you have already found the perfect home for you. If that is the case then you should make an offer to negotiate the best terms and price that can be reached. From that point what remains is to buy it and enjoy it. Consider the emotional benefits of purchasing and living in your own home, then you will understand that though price may be important, it is not the only important factor. It certainly does not benefit anyone to get hung up on negotiating the final $50 out of a $200,000 transaction.
The right home rewards in many ways so don’t get overstressed over minor details and don’t overpay. On the other hand, do not miss out on the enjoyment that the right home brings over a dollar. That dollar may be what prevents you from the happiness the right home could bring.
Bruce Swedal
Licensed Colorado Realtor
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Denver Real Estate
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Share3 Responses to "When Price is not the Primary Factor for Buying the Right Home"
With prices as low as they are, it would be wise to get as much home as you can realistically afford. A home that is 15,000 over their "budget" but perfect for them, is on average an extra 90 per month. Buyers cutting out an extra couple nice lunches out a week, may find that they can get the home they really want. Another important factor that could help, is look at the entire payment of the home. If the monthly hoa and taxes are less on their "dream home" at 150k compared to a 135k home with higher taxes and hoa could be the same monthly payment.
Posted on Monday, October 26th, 2009 at 10:25 AM.
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Posted on Friday, September 25th, 2009 at 5:04 PM.