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The Exclusive
Buyer's Agent ("EBA"), talks about "Values"
A.
What Is
It? "Value" is not the same as
"Price" -- except on the day you close and
take title to an object of your desire. "Value" implies
the "Worth" of a specific thing or group of
things, usually expressed in terms of dollars. Every thing has at
least two values:
1). its basic functional
value; and 2). its esteem or psychological
value. We will pay for "Class" , sometimes.
The example of a new car addresses this matter. The least expensive
brand new car from any manufacturer has the new smell, and with today's
average equipment will deliver the two of us from point "A" to
point "B" in a safe and timely manner. That is considered
"transportation". The same basic function of people
transportation can be performed by a vehicle from the same manufacturer,
with a sticker price that is double or triple that of the first vehicle;
and, we can say we had an added Value of "Class".
The additional dollars invested for the more expensive vehicle was
invested for esteem value, psychological value, (or class)!
B. How Does
It Work? The Knowledge
of Value is what really works! By analyses In Real
Estate, value is expressed in terms of dollars with approaches or
definitions: a). The Comparative Market Value
is determined by "Analysis" (CMA) and that
tells us the prices for which comparable homes or properties in a
comparable neighborhood have sold; b). The Replacement
Value expresses in terms of dollars how much it would cost you to
buy a comparable building site, in a comparable community, and to build or
to develop a comparable home or set of improvements on the land; and, c).
The Income Approach to Value expresses in terms of
dollars what a specific property is worth based on an investor's
criteria for investing. The EBA will provide the
analyses and perform the due diligence regarding your selected property.
And, as we proceed with our work, You will say when it's enough.
C. How Can It Help Me? An astute Buyer
wants to buy
value not price! It is the desire
of most Buyers to get good value for every dollar invested.
When we get a return in excess of normal expectations, for
the dollars invested, we say, "we have made a good deal!"
Paying too much can be like buying hot air in a balloon. It can
go away quickly. A good motto is to pay price
only when equal value is demonstrated. Pay over value
only when your esteem value kicks in. Then, with awareness of what
you are doing, go ahead and nudge the market a little higher or just
outright buy the class that you strongly desire and probably deserve!
In any event be good to your self! |
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More About
More Values
D. When
we fall in love,
with an object and
desire it greatly, we will sometimes pay full value
for it. If it is rare and the demand for it exceeds the supply of
similar objects, we sometimes see both higher asking prices and higher
selling prices. When a Buyer decides to part with the dollars to
OWN the object, a value has been determined in
that market. When prices continue to rise and Buyers continue to
buy, we witness what is called a Sellers' Market.
Value knowledge
in the hands of a well-qualified Exclusive Buyer's Agent ("EBA")
is a tool that can be trusted. This tool will be skillfully used to
demonstrate true values to the Buyer/Client.
E. Consider Other
"Values":
a). Think about "Shelter"
Value;
That is very basic. A roof over one's head while one eats, sleeps,
entertains and on and on according to one's "Lifestyle"
has value. Anything beyond basic value is psychological
or esteem value, as we have said. "Budget"
usually determines how much esteem value we can build into a shelter
package.
b). Think about "Investment"
Value;
That could be very important if you decide to sell in three to five years!
You may be thinking primarily about a roof over your head. That's
"very basic" and very important! But, if we can save you
money and build in "Future"
values or
benefits as we go, isn't that what you would really prefer? Your
EBA will provide you with the information needed to
make calm, sound business decisions regarding Investment in Shelter.
c). Think about "Confidentiality"
and "Loyalty" Values;
Your motivation and secrets are secure with an EBA.
You give the instruction. The EBA follows your instruction. Together,
we will find your comfort level and affordability limits. |
It's a Changing World
Out There 
