The Value of a Home
If you've been following Portland Real Estate - you know things are a bit whack-a-doodle here. There is currently only 1.3 months of inventory available, interest rates are still quite low, and loads of buyers are trying to locate and procure their dream home. The result of this cocktail? Multiple offers, over-bidding and plenty of rejection.
How do you manage the psychology of bidding over the list price? How do you come to terms with paying "too much"? Well, for people who want a bargain (that would be most of us, right?!) - this can be challenging to reconcile. I always review comps (and aim to look at any home though an appraisers lens when determining a fair price) and neighborhood appreciation. But when you're facing fierce competition for a lovely home - that value is all up to YOU.
(this home came up as a comp and it was priced so far over all other homes of similar size, etc - but look at this! OMG!)
You need to ask yourself a few crucial questions:
- How badly to you want this house? Have you already imagined your life and your family and your furniture settling in? Will you be devastated if someone else "steals" your house?
- Assuming you MUST have this house - it's definitely the one - how much is it worth to you? Forget the comps, the list price, the price per square foot and all the analysis. How much is it worth to YOU?
- Find that sweet spot price. The one where you won't regret paying this amount because how can you put a price on your dream? It's also the price that if you don't get the house - you won't be too upset because it wasn't worth more than that to you.
Of course, you have a budget and an appraisal (most likely) to consider, but buying a home can be a very emotional and personal decision - and your gut should play a big role in determining the value to you.
Good LUCK! And I'm here to help if you're ready to take the plunge!