I want the best deal.
Which areas of Scottsdale will appreciate the most?
I totally understand where they are coming from. I like getting a great deal, too. The challenge is that you often don’t know you got a great deal until after you made the purchase.
Value comes in many forms.
I woke up thinking about a running jacket I bought for myself last week. I was cruising Zappos.com looking for gear, and stumbled upon this most-beautiful technical running jacket.
I mean, I was instantly attracted to the photo. And, then I started reading about the jacket and all the features it had. And, I zoomed in on the design and loved the details and craftsmanship. I was hooked.
But….
My mind started playing games. “It costs too much.” “You aren’t a good enough runner to wear such a professional-looking jacket”. “The season for jackets in Scottsdale is too short, you’ll never get the value out of it.”
And, then I reminded myself that my birthday was coming up, and that this would be the perfect splurge!
So, you say, what does this have to real estate?
Many of us have been operating from the perspective that our homes are investments, that they appreciate, we sell them, make a profit, and then buy something bigger and better.
Well, what if our homes were not an investment (like the Rich Dad, Poor Dad School of Real Estate reads), and they, in fact, depreciated, just like our cars and my brand-new running jacket?
Any investor will tell you that in the classic rules of real estate, you make your profit when you buy the house, based on the price paid, but I can tell you that the rules have been turned up-side down over the past several years, so….
What if a home buyer started looking for the home that best fit:
The location they liked
The neighborhood they preferred
The style of home that made their heart sing
The floor plan that worked for their life style
And a price that fit their budget.
Would that be a good deal?
I’m not saying to overpay for a home, nor am I saying that homes will not appreciate in the future. What I’m really saying is that a good deal is more than just price. Does your purchase meet your needs and desires? Do you feel good about it? Would buying the home that made you feel good, deep down inside, be the one that might be the very best deal for YOU.
Ask me while I’m running down the street in my new jacket that keeps me warm, breathes with me, and looks stylin’, and I tell you “Yes!”



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What a novel idea, I like it, maybe we should go back to buying things that we like instead of worrying about the investment part of it. If we own real estate long enough, the ROI will come on it’s own.
If I had a dime for every potential client that tells me they want a great deal (usually defined as an unrealistic discount from asking)…..
BTW, Happy Birthday!
.-= Rod Rebello´s last blog ..Introducing City Market Stats =-.
I am with Rod on this one. I would be a millionaire already!
I really like the way you present the idea of value and its multiple elements.
Dru, you ALWAYS look good!
I love the jacket analogy, it is right on the money!
.-= Rail Life´s last blog ..Rail Life “Flickr Pic” of the week – Palm Trees and a Potato Chip =-.
Great piece! Value comes from our pleasure and use of the home, not just the dollar value.
Dru, if I lived in Scottsdale, I’d want you as my agent. Can we clone you in San Diego? What a wonderful analogy and reminder of what’s important. Thank you! Your integrity shines through. You’re a great example of the professionalism and success attitude that N. Xavier Arnold talks about in his book Best Real Estate Investing Method. Kate PS. I’m glad you got the jacket.
Thank you all for your feedback. I’ve been thinking about this analogy off and on all week, appreciating your comments, and loving my new jacket more every time I wear it!
.-= Dru Bloomfield´s last blog ..Scottsdale Fit City 5K and Expo =-.
So basically your argument is buy a depreciating asset at out-sized value because it makes you happy and do it because the rules have changed. You must be a moron…oh wait no you want a commission and so do the rest of your self-congratulatory peers. Forget how financially damaging a decision like this is, forget that you may be underwater, because hey just like my new jacket, and my benz it makes me feel warm and fuzzy. Get a real job.
Renter,
No, that’s not what I’m saying. I’m saying that sometimes buyers who do want to purchase for all the right reasons freeze up, worrying about making the best investment, rather than seeing the functional use that the home will provide. I don’t have a crystal ball, but I can tell you that historically real estate has been a solid investment for many, many people. The past several years are the results of an industry gone wild, where you and I are bit players.
What I am saying is that when someone is buying a home to live in, the rules can be a bit different. At least they are to me. When I plan to live in a house, I’m much more focused on the features and location of the property and how I feel in it, as opposed to when I’m purchasing an investment, where the dollars and cents are my primary focus.
Sorry if you didn’t like the analogy. Good luck.
.-= Dru Bloomfield´s last blog ..Scottsdale Real Estate Market Update – Home Price, Size and Age: What’s the difference between North and South Scottsdale? =-.