I read a quote from Warren Buffet a few months back. He said:
“I would rather buy a great company at an average price than buy an average company at a great price.”
I found this one interesting. Often times within the first seconds of a conversation with a home buyer they say, “I’m looking for a deal!” Who can blame them in a market like this? If I was looking to buy a home I would be looking for a deal too. “Deal” means different things to different people. To me a deal is a home that I can buy for 80% or less of TODAY’s market value. A deal to someone else might be buying a home simply at market value. Because today’s market values are definitely considered “a deal” when compared to prices 4 years ago.
The problem comes when you want to find “a deal” along with a laundry list of other necessities like 3 bedrooms, 2 bathrooms, 2500+ square feet, swimming pool, in a good school district, within 20 minutes of my work, on a cul-de-sac, built within the last 10 years, open floor plan, split plan and with a large yard. What are the chances of finding that? Probably pretty slim to none.
Homes buyers can usually find a smokin deal which means a home selling below TODAY’s market value however it is not in a great section of town, the home needs a ton of repairs, is too small, on a busy road, does not have a pool, has a choppy floor plan, was built a long time ago, and in a bad school district. Or they find the home that matches most of their needs and wants but can only be bought at TODAY’s market prices and not below it.
Home buyers should ask themselves:
“Do I want an average house at a great price or a great house at an average price?”
Marc Rasmussen selling Longboat Key Real Estate
