Recent Listing Appointment Story | How to make the Right Buying Decision?
Frankly, if we had a crystal ball on how different markets will do, we would all be millionaires! And while we do have certain indicators we look at for appreciation, there truly was no way of telling how much or how little the property would increase in value.
The truth is people buy homes for many different reasons. Sure, when we are out with buyers, we are always looking at the pros and cons of every property and location. As realtors, we also have our “resale-ability radars” ON.
However, when it comes to making a decision on a property, you need to know exactly WHY you are buying.
● If you are a flipper, we need to make sure the numbers make sense immediately and that the home is purchased below market value.
● If you are an investor looking to rent out the home, then we need to make sure the cap rate makes sense, and that the monthly rental income has positive cash flow.
● If you are buying for yourself though, you better love the home! What I’m about to say can sound controversial, but not every purchase should be considered as an investment first.
See, when I asked my customer why she purchased this home in the first place, she said she loved the modern windows, the tall ceilings, the walkability to all the great coffee shops and parks nearby. She said that throughout her time in the home she met great friends and neighbors, she had great parties and built memories. So now I asked her, did you make the wrong decision?
She smiled back at me and replied, NO. I absolutely loved this home. Not to mention, she still needed a place to live throughout this time.