PRICE..VALUE..WHAT'S THE DIFFERENCE???

To most people, especially first time home buyers, these two words have about the same meaning. That is simply not true. I encourage all my buyers, first timers or old pros, to shop "value" and not price. Way too many buyers look at the price someone puts on a home and want to bargain from there to a lower price. What they should be looking at is the value of the home and bargain from that point. What do I mean?? Well, recently I had a buyer who was looking at a home for 179,900 and had "bargained" the seller down to 150,000. They thought they were winning big time. Problem was the home they were looking to buy was only worth high 130's to mid 140's in todays market. Were they winning? I think not! You have to look at the true value of a home to begin any negotiation. In this market there are many homes priced AT their true value because the seller is serious about selling and getting along with their life. It would be very foolish to try to bargain a much lower price on a home properly valued to begin with. People love a bargain but too often are controlled by the list price and not the true value. If a home is priced over its true value, then you can offer a low price and hope to get the seller down to true value. However, when a home is fairly priced, it is equally important to recognize that fact and bargain accordingly. Any good agent should be able to help you arrive at a true value. Simply by knowing what is available, at what price and in what area. If your agent seems queezy on the value, I suggest you get another agent. You, as a buyer, must also be aware that a lot of agents only want to close the deal so they can move on to another deal and another commission. Be sure your agent is working for YOUR benefit, not their own. Ask your agent for all the sales and listings in the neighborhood and you can access the value yourself. Compare not only price, but finish, square footage, loction, quality, lot size/shape and condition. Be sure you are comparing apples to apples and make adjustment for differences. This is the way you will win in the long run.