Is real estate all about Location

There is a saying that goes "Real Estate is all about location location and location". I suspect that has always been a bit of an oversimplification. Certainly price fits in there as well. But what about condition of the property??.

I suspect the reason location is so important is that you can always change the condition and look of the property with a few renos, and the price a person is asking for the property for the most part is negotiable, but you can't change the location.

But new surveys say that although location is still important to buyers, there are 2 other equally important items on their list.

Move in ready condition: buyers today are looking for the seller to have already made the upgrades to the property to keep it modern and looking great. Todays buyers are too busy to deal with all time and effort associated with planning, getting quotes and dealing with trades, not to mention having to live in the home while under renovation, if that is even possible. Todays savy buyers are looking for move in ready, unpack and enjoy life.

Cash left over after purchase was other item that sufaced as being right up there in importance. Maybe that means securing an insured high ratio financed mortgage with a 5% or 10 % downpayment, and keeping  the extra liquid cash in their jeans for a rainy day, holidays or furniture. With historically low mortgage rates that strategy is good advise. Most mortgages have clauses that allow you to double up payments, or drop an extra 10 or 15 percent on the balance every year. So if the extra cash a buyer held back for a rainy day was not used and they are having a good year they can drop that extra cash on the mortgage later on, effectively reaching a mortgage free status sooner than scheduled.

The survey gets more complicated when you start separating the Boomers from the Gen Xers and the Millennial generations. Although there maybe some general observations as to the differances between those generations and their attitudes and buying habits, I believe that at the end of the day every one, no matter which generation, wants good value for their money and to balance their housing, financial, family and leisure lifestyles.

Jeff Sim

Jeff Sim

CENTURY 21 Westman Realty Ltd.
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