How HGTV Is Like Meth For Homebuyers
Yesterday, Preston Scott asked me how much HGTV has impacted the real estate market.
Well, believe it or not, it has had a huge impact on homebuyers, and typically not in a good way.
Like an addict wanting a quick fix, some buyers are not making sound decisions.
Listen To Full Podcast Here
Real Estate Value
Today's buyer is less connected to real value than any buyer I have seen in 27 years of selling homes in Tallahassee.
What I mean by this is there are buyers coming in and buying homes with absolutely gorgeous kitchens and knock-out master bathrooms, but the land these homes are sitting on will not hold the long-term value like some of the more established neighborhoods in town.
The "wow factor" of the glitz and the glamour that they see on the renovation shows is moving them to make unwise purchases. They are buying the modifications, appliances, and "lipstick," but ignoring the real long-term tenants of value.
Much like a meth addict, they are totally focused on the quick high (the now!), and they are not even considering the long-term financial impact of their purchase decisions.
Here's the question nobody has bothered to ask them: "When your kitchen is 10 years old and your master bathroom is no longer modern, how will your home stack-up against the larger homes closer to town on a quarter to half an acre of land? Which homes do you think future buyers will want to buy (and update)?
Kitchens do not appreciate, they depreciate (lose value). Bathrooms do not appreciate, they depreciate. Flooring and paint depreciate too. But do you know what appreciates?
Your location, if chosen wisely, will appreciate more rapidly then all the rest of the home that is depreciating. Why? Because the best locations are sold first and for highest dollar. Focus on the dirt first, then allow yourself to indulge.
Home Buying For Smart People
A process designed to save you money when buying a home
Something tells us you’re just … well … smarter than most people looking to buy a home.
You’re not naive, you are looking for a house to call home, and you want to make sure that you love the home you buy, but also get a great value.
In other words, you don’t have to be an Einstein to “get” the home buying process. But you do have to be prepared.
We can prepare you
What Will Future Buyers Want?
The future resale potential of a home might not be the most important piece of your home purchase decision, but shouldn't it be included? Do you really want to buy a disposable home?
One of the greatest benefits of homeownership is the long-term accumulation of equity, so a prudent buyer adds this element to the mix when selecting a home for sale.
When the floor coverings and appliances are dated, what do you have left? You have land.
Whether you are buying used or buying a newly built home, consider the land and the location before even allowing yourself to be tempted by the finishing touches inside. When it comes time to sell, you'll be glad you did!
If you plan on buying a home within the next two years, start your preparation early and you'll end up not only loving your new home, but you will also put yourself in a position to have a home that will benefit you financially. To get started early, simply give us a call at (850) 366-8917 or drop us a note and we'll schedule a time to help you on your way.