Before you set out to purchase a home, you must do some research. All of the experts will tell you that you have to be an educated buyer in order to make the transaction an easy one for you.
The recent radio broadcast of “Eye on Real Estate with Dottie Herman”, Herman, the CEO and President of Prudential Douglas Elliman, discussed that there are three main aspects to purchasing a home. They make up the “worth” of the home.
Herman mentions that you need to hire a real estate broker that is familiar with the area you are looking in. Since it is the job of the broker to have a full understanding of the market, he or she will be able to find the very best investment for your needs. This takes all of the guesswork out for you.
When you have found your broker, you are going to want to research the various attributes that you are looking for in a property and then finalize a budget. Once you have done that, it is time to begin the search for the home of your dreams. Herman does suggest that you are consider the following when looking at a property:
Herman explains, “It’s an opinion of what you think the home is worth, based on how you are going to use it.”
The value is going to be calculated differently for everyone, depending on his or her lifestyle. For example, a piece of property that is near public transportation would be worth more to someone who desires that than to someone that never uses such a service.
Herman also mentions that many sellers make the mistake of believing that the cost of the house is the amount that they paid for it, plus the cost of all of the improvements that they have put into it. She elaborates, “Cost is [just] a measure of the past.” Remember that every buyer is going to view the “value” of the home differently.
She continues to emphasize, “Cost and value are not what the price of the home should be or shouldn’t be.”
“Price is what the home should be worth today. But sometimes people don’t price it right, so what you really want to look at is fair market value”, Herman explains.
The cost is going to be viewed differently by various buyers due to the perceived value of the home. Because of this, when you are looking at what you want in a home, you are going to need the expertise of your broker to help you see the way.
Once you have viewed several properties and narrowed your choices down to a few, you are going to want to give your broker the information on them all. Herman stresses that you need to visit the properties on your own as well. Think long and hard about your choices and go with what feels right to you. Remember, as Herman states, “there is no exact science to pricing.”
- Written by Megan Gates and brought to you by VIP Realty Platinum.