In real estate when you hear the term "value" people generally assume that means the price. Price and value often are synonymous.
When it comes to luring the baby boomers to make the commitment to settle down in a new home town and
change the direction of the rest of thier life, value becomes far more complicated than just price.
Value has a number of definitions.
Fair price is one. Value is also defined as; an estimation of the worth, merit or character of something, having admirable or
esteemed qualities or characteristics, highly regarded, worth in usefulness or importance to the possessor.
Some of these have nothing to do with price. Value takes on another dimension when it encompasses how people feel about personal security,
and feeling secure about their future. It is easy to make the case that value is tied to price when you consider retirement income and future financial security.
"Maybe it is time to consider living dangerously. Maybe it's time to reject the commands of power, the dictates of society and public opinion,
and to stop worrying about what other people think about what you do. You have the power and ability to create your own reality — to change
what isn't working and to manifest what you desire."
— Dick Sutphen
Some people value this approach to life while others will dismiss it.
Perceived value depends on what really motivates the individual.
Greed drove the speculative booms, fear is motivating more people today. Fear subsides with security. For many of the currently retiring generation
a sense of security is trumping the "keeping up with the jones" syndrome. Some will cling to the snobby, false impression that dollars equal value,
but for most, the BMW's and McMansions are less valuable for the sole purpose of impression, given the real cost. It is a great illusion of value.
When the real price may actually be peace of mind and security.
Less stuff and a more conservative approach has more value if it equals peace of mind. Savings equal security.
The term deleveraging is about less debt. Less debt works. Less debt offers a sense of accomplishment, peace of mind and security.
Living on less than we have verses beyond our means, offers a high level of satisfaction and security. Remember security equals less fear.
And what other people think becomes nearly meaningless in comparison.
So what does all this have to do with the price of real estate? Perceived value includes lifestyle, location, security, and affordability.
Real security comes to those who don't have a mortgage. Will this generation embrace this?
So what is the price when Real Value may be about how well you sleep at night.
Chris W. Miller
ERA Brokers Consolidated
Mesquite NV 89027
702- 346-7200
435-862-5951
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