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Perceived Value

Posted on 23 May 2008

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If you’re like most people who own some type of residential real estate, your perception of it’s value is probably what convinced you to buy it in the first place.

Realtors constantly try to create an illusion of value in order to sell properties. Sometimes the best perceived value is built into the property and all that needs to be done is to point it out.

Foreclosure, auction, short sale are all triggers that automatically suggest value. Although there may or may not be true value people will buy what they perceive.

Unlike any other investment, I believe that real estate can give us more. If I were to look at a property today as an investment I’d want to know certain things. My perception of it’s value would be limited to where it is and what type of property it is. After that it comes down to answering the age old question. Do the numbers work?

Most people don’t care and in fact don’t know what those numbers mean. The problem with that type of purchase is it’s strictly based on a perception of value or emotion. And for many, apparently that’s good enough.

But what if it weren’t. What if we the buying public, began wanting to know more than “it’s a foreclosure”. What if as a sophisticated buying public we wanted demographic forecasts, historical data, area vacancy data, rental possibilities, hypothetical cash on cash analysis and capitalization rates.

What if we worked the numbers  for our primary residence as if we were buying an investment property? Would you still be happy with the investment had you looked at the purchase from a different perspective? Would it still make sense?

Successful investors rarely buy any other way than by the numbers. Successful investors strive to minimize risk in order to create real value. If the numbers don’t work, the value is not there and it’s on to the next possibility. There are always lots of possibilities, so there are always opportunities.

At GES Real Estate we have no illusions of value or risk for that matter. We know how to analyze a property and uncover any risk that may be associated with it. We have the experience necessary to find real value in real estate and to put it in the hands of our clients. With all the difficulties of mortgages, property values, and the economy in general , at GES Real Estate  we continue to help our clients find real value in order to make truly informed decisions where real estate is involved.

Our help has minimized risk for many families buying a home or taking on a mortgage as well as for investors. By sticking with us our clients have remained comfortable and on solid financial ground. Knowledge is truly power, and there hasn’t been a time that I can recall when we’ve needed that knowledge more.

For real estate and mortgage services. For foreclosure information or investment analysis. For information that everyone needs, visit ges-realty.com or just call me directly at 561-306-6736.

There are incredible opportunities in real estate right now. Whether you need to restructure your debt with new financing, or you need money to purchase a great real estate investment.

We can help you find, analyze and fund your home or investment property with the knowledge necessary to capitalize on todays real estate market.


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This post was written by:

George E. Sinacori - who has written 16 posts on Real Estate Radio USA.


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