Tucson, Arizona

What is Value?

"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.  Everything has at least two values:   

• Basic functional value
• Class: Esteem or psychological value     

For Example:
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).

How Does Value Work? 

By analyses In Real Estate, value is expressed in terms of dollars with approaches or definitions:

• The Comparative Market Value is determined by "Analysis" (CMA). This tells us the prices for which comparable homes or properties in a comparable neighborhood have sold.

• 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.

• 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.  As we proceed with our work, you will say when it's enough.

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 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.

Consider Other "Values":

• "Shelter Value" 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.  "Budget” usually determines how much esteem value or class we can build into a shelter package.

• "Investment Value" can be very important if you decide to sell in three to five years.  You may be thinking primarily about a roof over your head.  However, if you can save your money and build in "Future” values or benefits as we go you would be making a smart investment.  Your EBA will provide you with the information needed to make calm, sound business decisions regarding Investment in Shelter.

• "Confidentiality Values” and "Loyalty Values" are your motivation and secrets that are secure with an EBA.  You give the instruction. The EBA follows your instruction.  Together, we will find your comfort level and affordability limits.

   

Contact APL Properties LLC today at 520-747-4747 or 1-800-900-5327 or browse our website for more information regarding Property Management or Brokerage Services.