Why Home Price Doesn’t Matter
It is said, that people only buy on price & terms. I 100% believe this is a false statement. In the following paragraphs I will go into detail on why the home price doesn’t matter, & how decisions are made on other factors. The controversial headline written above might make individuals think, “does this guy even know what he is talking about?”. Well, to put things straight, I do believe your “budget” matters on what you can afford & continually pay over the mortgage term.
The Price of Your New Home
When you are out shopping for a new home you are typically “pre-approved” up to a certain amount. This pre approval is based upon what you can financially afford so you are not over leveraged & get into financial trouble in the future. PLEASE DO NOT OVER LEVERAGE YOURSELF. But when it comes to making an offer on your home, price isn’t the objection.
What I think all sales come down to is a few things…
- Does this home solve my current problem?
- Does it make sense for me to do?
- Do I love it?
If you answered yes to the following questions then does price really matter? Of course the house has to be affordable, but would you even be looking at it if it wasn’t? I have found through experience that emotions typically control the entire sales process. For example… have you ever bought something at Target that you really didn’t need, but it was convenient & solved a problem you were having? I know I have!! As humans we run across situations like this all the time. We tend to gravitate towards products or services that solve problems for us, regardless of the price.
Are you Saying I Shouldn’t Try to Negotiate?
NO, I am saying that the price you end up paying will be a result of the product or service solving your problems. A good salesperson will do all they can to negotiate price & terms for the end consumer. With that said, most of the time there is only so much room in the price. Then you have to ask yourself the questions mentioned above… does this solve my problem, does it make sense, do i love it?
If it does, then move forward with the agreed upon price! I have found that if a decision isn’t made, not only will you later regret it, you will wish that in the moment you made the right choice.
Now you might be saying… “Well Carter, I don’t know how to negotiate.” That is completely fine!! Unless you are buying a car or some other type of product, you won’t have too! That is the amazing thing about being represented by a “buyers agent” in real estate. They will negotiate on your behalf & keep your best interests in mind. Which in the end means you will get the product you love & desire, and are ecstatic with the decision you made!
What I See Happening
I am involved in scenarios all the time where the “Realtor” can’t get the deal together. They always say “I can’t get the buyer/seller up any higher/lower”. What they are failing to due, is break down the scenario into the simplest form… When it comes down to it, for every $1,000 dollars a buyer raises their offer by, it is essentially $5 a month more(at current rates). If you are worried about a $5 increase, please don’t buy a house. But instead of focussing on price, the focus should be on what problem is this solving for the “buyer/seller”. The questions that the Realtor needs to ask are:
- When do they want to be in a house
- Do they really want to keep searching
- Does this house fit all of their needs
- Is it a smart financial decision to make
- What does this house have that their current one does not
- Why did you choose this house to make an offer on
These questions will find the real problem that needs to be solved so everyone can have a successful transaction.
My Promise to You!
As an experienced salesperson & Realtor here in the area, I make this promise to every client:
- You Will Buy Your Dream House
- You Will Make the Smartest Decision for Yourself & Your Family
Of course I will do everything in my power to get you the best deal. But most importantly, I will make sure that you do not make the mistake of passing up a property or selling your property because of price.
If you are interesting in Buying or Selling Real Estate, please reach out to Carter at 920-252-2864 or enter your information in the form on this page! Happy House Hunting!