Better Mousetrap Logic in Real Estate

The 3 most important things in Real Estate are Location, Location, Location or Price, Price, Price?


The time honored statement in real estate is Location, Location, Location. They say it 3 times to emphasize that it’s the single most important detail, more important than any other details you might consider. There is even a little humor in there to make the clever point about location being single most important detail that takes 1st, 2nd, and 3rd place all by itself.
However, the logic is under assault these days by a formidable challenger- Market Forces... and here are a few in play in our market today;
1) The economy is struggling somewhat. Call it what you will, it’s sluggish.
2) From 2003 to 2006 most local real estate values doubled. People want this overheated market back so they can sell their home for big bucks.
3) From 2006 to the present real estate values are down, correcting, normalizing, and people are scared it’s never going to stop.
4) Just for fun let’s make the case that lower price cars, stores, labor, and products in general are all serious competition for the medium and upscale products on the market. Some people can still afford the top of the line items but there is large chunk of the population that is cash-flow conscious and they are the consuming based on Price, Price, Price.
There is no blame being placed here, the facts are the way they are because of market forces. Have you heard the theory about “someone is always trying to invent a better mousetrap”? How about if it’s approximately the same mousetrap for a lower price? It catches the mouse and costs less. Valid point.
We can argue the same points to some extent in real estate as well. Your dream house is tucked away in the pines, has everything you would love for your family but costs twice what you can afford. Another house is in your budget but it’s not in the pines and there is no view. So the ideal location is out of your price range but a functional home is in your budget, should you lower your standards just to have a home or wait until you can afford the dream house?
The correct answer is to discuss this whole issue with people you trust- Family, Friends, Accountants, Lenders, Realtors, and so on. It will take some discipline to buy a home, you have to make the payments and be careful what other things you spend your money on so that you don’t extend yourself too far. The upside to buying a home is that it will probably go up in value as the years go by. It’s not an overnight thing and it’s not usually get rich quick. Park your life, raise your kids, and improve the value of your home by the way you live in it and treat it. They don’t call it the American Dream for nothing.
If you aren’t ready to buy a home the next best thing is to rent with the idea of saving every month so you will have more money to make the down payment when you decide to buy. Renting is easier but the money goes to your landlord. Buying a home and living in it for some years is usually advantageous in many ways if you stick to the program.
Someone’s dream home is all about Location, Location, Location. To be fair most people’s first few homes are not what they would call their dream homes, they were more about Price, Price, Price. Hopefully they will have some fabulous memories attached to them and a family history that is part of the property. Add some dreamy details to the home while you are living there. Keep a good perspective and live it up!

There is a powerful search engine on my website www.craigmann.net if moving to Prescott is on your list of stunning places to consider moving your life. Pay attention, work hard, and by all means live it up!