Jim Valentine on Real Estate
When you are buying or selling real estate, it is wise to remember that there is more to the transaction than the price. It is easy and quite normal to get wrapped up in the price of the property.
But in most transactions, there are other components that can have an equal or greater impact on your decision. It is important that you identify and understand those to have the proper perspective about your intended transaction.
Sellers are typically selling for a reason. What is it? Are you struggling with the payment due to a change in life circumstances? Do you have or want to move to be closer to family members that live elsewhere? Is the home now too big or too small for you? Do you just want to jump in an RV and travel for a year or two because it’s time and you still can? Whatever the reasons, identify them and act accordingly.
Reasons for selling are also referred to as seller motivation. What is motivating them to sell? When the motivation has a time constraint, there will be limited flexibility in the pricing of the property. You will want to attract a quality buyer quickly so you can close in a timely manner. If you are moving sideways in the market, you can sell at market value as you will be buying at market price as well. Watch both sides of the market, both buying and selling if you are in a changing market, so you don’t get caught going the wrong way on one side.
Buyers, too, have motivation that should be identified. Theirs can range from trying to be in a specific school district to living in an area where they can have a horse, and many, many other factors to be identified and measured as to how they will impact the overall decision. The size of the house, size of the lot, size of the garage, number of bedrooms, two story or not, HOA acceptable, style of home, location, floorplan, price point, etc. all factor into the buying decision.
In a dynamic market with a lot of competition, buyers may have to make concessions to some of their wants and maybe even needs. This is a critical decision. Will a better-suited property be available in a month or two? Remember, you are making a long-term investment. What is a month or two if you can get what you truly want and/or need in that time? The comfort of having a home purchased so you can get on with your life has value as well. That is often the reason for paying more than one might want just to reduce some of life’s stress.
When you make your decision, remember that the price is just a money decision. Money comes and goes, but the satisfaction of ownership can be a much greater return to you than the financial return when you consider the “emotional return on the investment” that you benefit from with your decision. Your home is your proverbial castle.
It is quite normal to go through phases of home ownership as you progress through life and your life circumstances change. Just like going from a sports car in your youth to a van when you have your family and then to a collectible to drive around and feel good in, the right home for your place in life will change as you move through your life. Identify when its time and don’t be afraid to make a change.
A simple way to measure motivating factors is to ask yourself – is it a want or is it a need? Be clear on that. If you have one driving need that trumps all others, be clear about that is as it will drive your decision-making process. Wants are nice, but some are far-fetched and will narrow your opportunities so much that they will make your quest’s success questionable, i.e., having a stream run through your property (we are in the desert – it exists, but not often).
Always be very clear about your purpose in a desired transaction and the right thing will happen for you. It really works. When you are clear about your buy/sell objectives, you will know when it’s right and you will be able to proceed quickly with confidence.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. dpwtigers@hotmail.com
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