26 Jun Do I buy my house for price or value?
When we look for a house we define some aspects that are limiting like neighborhood, size and budget. If this equation is realistic the search will be so too and we will surely find various houses to visit and analyse before making the final decision to buy.
If we find a house we like for its location, distribution and if the price matches the budget we had set, we are talking about a house whose price will be fixed by the market conditions in that area and it will be easy to make a decision to buy. If we can also negotiate a little, perfect, then I’ll be buying below market price and the house’s value will be higher than the final price.
But if during the search we realize that the houses we like have prices above our initial budget we must rethink the process. Surely the price isn’t wrongly set, it’s happened in more than one house. What value does that house have for us?
The price is a monetary value established by the market, value is set by each one of us depending on the benefit it gives us, and the degree of utility of the property according to its characteristics or circumstances. Value depends on the ability to produce happiness and, isn’t buying a house one of the happiest times in our lives?
Let’s value the house then from this point of view, for value, the psychological element, our desires and our needs.
Let’s put a value on that price. The house has the size and distribution that I’m looking for, it’s bright, it’s in the neighborhood that I like, it’s a good house and it fits in with my initial idea. It is the house I was looking for, it meets all the requirements and all my expectations. Go ahead then with the price.
That’s the way we will find the house we are looking for. Go ahead and good luck.