Good to Know!

By: Megan Gates

While many people can buy a house, few actually go through the process of doing their homework and getting a good deal. According to President of Prudential Douglas Elliman Dottie Herman, there are three important factors that come into play with every purchase of real estate. She says that the three most important factors in buying a house are cost, value, and price. Although these terms sound very similar to one another, they are definitely not the same.

Value! The value of a house is how much you think it is worth, based on what you are going to use it for. One house may have a very high value for one person and a low value for another.

Cost! The cost of a home probably isn’t what you think it is, according to Dottie Herman. She says that “Cost is [just] a measure of the past.” Many homeowners think of the cost of their houses would’ve paid for it plus the cost of any improvements that they may have made along the way. In reality, you can’t always add the cost of the improvements, because those improvements have different value for every person. Some people will love having new hardwood put in, while others will think it looks bad. This is why you can’t simply add up the cost of the house and the cost of the improvements to determine cost.

Price! The third factor that you have to look at when buying a house is the price. The price is what the property should be worth in today’s terms. This is best determined by looking at the fair market value of the property. This can be determined with the help of a real estate agent. They can do a competitive market analysis that looks at how much similar properties have sold for in the last few months.

Working With a Broker-If you are in the market for a house, it is usually a good idea to work with a real estate broker or agent. Instead of trying to figure out value, price, and cost on your own, you can use the expertise that comes with a real estate agent. A good agent will be able to help you sift through all of the properties that are available on the market and find the one that is best for you.

What to Look At-When you are looking for a property with your broker or agent, there are several factors for you to look at. One of the most important factors to evaluate is the location of the property. You need a house that is located close to the things that you want to be close to. The house should also be located in a good neighborhood. You should also consider the condition of the property and the age as well. For example, if you want something that is ready to move into, you should not consider older houses that need work. Once you find a house that meets your criteria, you can make an offer with the help of your broker.

Megan Gates is an active blogger who provides written work pertaining to home improvement, the latest architecture, design and fashion.  She also writes on behalf of Elliman Real Estate.  Follow her on twitter @MEGatesDesign.