|Cost vs. PriceIt seems to me, the consumer today is conditioned to believe that the “price” of real estate today is the most important factor in their decision making process. Like so many other things in this world, public perception is driven by what they read in the newspapers and what they listen to on TV and radio.
You then throw in all the commentary from the many internet sites and blogs and you have instant experts professing that price is the only factor when considering when the time is right to buy real estate.
I tend to disagree. While we all like to know the price of any goods or services that we are considering purchasing, what we often overlook is the true cost of those goods or services. A case in point, I have a very successful friend who flies private jets wherever he travels on business. While I personally think it is crazy money to spend, he points out that his time is worth far more than he spends on his private air travel. He has calculated he can make more money than he spends so the cost is less than if he had to spend the entire day getting to his next appointment by normal commercial carriers.
The same can be said in our business. How many times have we seen a buyer wait to get a property at the lowest price only to find that interest rate financing has increased, offsetting the lower price they were attempting to get?
We find ourselves in times of historically low interest rates that I am sure we will look back on and remember as “the good old days” of low interest financing. I suggest we need to remind our hesitant buyers that the overall cost of owning a property has never been lower when taking all the factors in to consideration. They are not hearing this from the media so it is up to us to tell them the facts.
All the best,
Dennis Curtin, Region Owner
RE/MAX Mid-States & Dixie Region