Mon 25 Feb 2008
How can I trust you, Mr. Realtor?
Posted by Marlow Harris under Real Estate
[3] Comments
Cute story. Not true, but based on a composite of characters we’ve all met and worked with over the years.
So how can it always be a good time to buy a house?
OK, I read the story. The guy left out the savings, investment of savings, and predicated his assumptions on the Real Estate market going up in value. He is also outlining the perfect storm of the perfect house, in the perfect location, and perfect for all the family needs.
Is that realistic? Is it all perfect if we just buy? In today’s market place the fact that Real Estate can go down in value should be the number one caution to buyers.
But who cares if it goes down? When you buy a new car, it goes down in value, but we don’t freak out and then turn around and try to sell it. We keep it, drive it, use it, enjoy it. We need transportation. We figure there’s a cost to it and we bear it. We all need a place to live. So what if it goes down in value? We’re receiving value by living in and enjoying the house. Why should a house be any different from anything else we buy? If we buy a new dress, we can’t wear it a couple of times and hope to sell it for anywhere near what we paid for it. We may even have charged the dress on our credit card, so we’re paying for the newly-depreciated dress with cost plus interest. So what? Why is a house considered any different? At least with a house, we have a HOPE that it may go up in value at some point. But cars rarely do, and I know for a fact, dresses hardly ever
Sorry, my car is used for business. My suits are for business. We may enjoy our homes, but it takes money to put those kids in school. The person in the apartment may get some sense of financial security by having money in the bank.
Really it has to do with the article and it’s premise; he implies that Real Estate goes up in value.