People will sometimes confuse price with value
I received an email the other day with a quote from Warren Buffett "Price is what you pay - Value is what you get". Most people that are looking at buying real estate are looking at the price. What will it cost - How low can I get the seller to come off the price. They hardly ever try to evaluate what they are buying. The residential buy is more likely to do this than a person that is buying a commercial property. Most of the time they are looking at the investment value of a property based on the return they might expect the property to generate.
A few weeks ago I wrote a post entitled In Real Estate You Make money when you buy not when you sell which would seem on the surface to contradict the quote above. However, If you really look at making on a property it is the value not the price that will determine the potential profit when you sell. Even a person or family looking to buy a home needs to really look at the value of the home to them. Not everyone looks at the value of a property the same why. The value to a person or family that have small children might different needs that will create value for them that may not be the same for a single person. We have all heard that in real estate it is Location-Location-Location. The location of a property is normally far more important in establishing value than the price.
As real estate agents we need to help clients, in addition to their basic needs, to understand the value they will receive for the price they might pay. It might help them reevaluate the price they are willing to pay.
If you are a residential agent that would like to expand your business into your local Commercial Real Estate market, with NO UPFRONT COST, than call
Michael Sloan, CCIM at 208 946-5271 or on the web at group1realestateconsulting.com
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