We all know what real estate market value is right? It’s the value of a property that has been dictated by what similar homes, or comparables, have recently sold for and how that compares to the property you’re wanting to purchase. This gives us a good idea of what a home is worth on paper.
What you may not have heard of is a phrase I coined and that’s Heart Value. This is what a home is worth in your heart and I tell all my buyers to consider it when they have reached a crossroads during negotiations of how much to pay for a specific property. I may tell you a small range of what I believe a property is worth on paper, but if you really love it and it meets all your needs, your heart value may kick in. If your heart value is high, then it may be work paying a little more or reducing seller paid closing costs to be able to call it yours.
I’m not saying to bust your budget or buy something you cannot afford…I would NEVER tell you to do that. I am in the business of helping you find what you need or want within your budget, however, a few thousand dollars more isn’t going to make much difference in monthly payments.
It’s kind of like going to the grocery store and having hotdogs on your list for dinner. When you’re there, you see the perfect hamburger and decide that’s really what you want. The hotdogs may cost $4 and the hamburger meat costs $10 but the hamburgers will fill up your stomach longer and taste better than the $4 hotdog. What are you going to do? Most likely you’ll spend the $6 extra dollars and get hamburgers because $6 isn’t breaking the bank. Keep in mind, I’m not talking about $20 steak vs. a $4 hotdog. It’s the same when you’re buying a house. You don’t want to put yourself in a bind to get the house like a steak on a hotdog budget, but if you find a property that’s more of a hamburger than a hotdog, it may make sense to spend the extra money to get a home that fits your needs better.
Every transaction is different and that’s where I come in. I will guide you on how much to spend on the house to get without paying too much for it and potentially cause appraisal issues. I also like to talk with or have you talk to your lender prior to making the offer so you know exactly what your payment will be should the sellers accept and you won’t have any surprises.
If you want to chat about real estate Market Value vs. Heart Value, shoot me an email at April@AllStarSC.com. I’ll be happy to answer any questions you may have.
