Simply put, price is what you pay and value is what you receive. As a buyer, your goal should always be to get the most value at the lowest price possible. As we all know, in real estate, it all comes down to location. But location will drive price up through the roof without increasing the value. For example, for $500,000 you could buy a small condo on the beach or you could buy a large single family home with some land a few miles east of that same condo. The price is the same, but what you are getting is obviously much different.
If you are an investor, the absolute key to make long-term wealth is to get the most value in a property you possibly can at the best price. Our market is down so low, that prices across the board are down. If you can get the biggest home or best views, this is the time to seize that opportunity. If you can buy at a 20% discount in addition to the lows we are already faced with, that is the true key to wealth building. It takes discipline, patience and good advice, but it can be done.
The other opportunity in which we are seeing value and price lining up right now is in new construction. I know of a few brand new construction projects in amazing locations with unheard of prices. You could never build a home for these prices and you are getting one that is brand new with builder’s warranties included.
Older, established communities are also offering great value. Some homes are selling for the same prices they were 12 years ago. What an opportunity for a buyer, to be able to capitalize on the financial strength and cohesiveness of a well- established community. These are areas that most likely will continue to thrive in the future. People want to live there and will gravitate towards them.
If you can capitalize on an A+ location and get a great price, you will be well ahead of the game. When it comes time for you to resell the unit, buyers always gravitate towards the best locations and if they can buy a newer unit, yours will sell before the competition. Remember that just because something’s cheap, that doesn’t mean it’s worth buying.
Gabe Mellein was voted a Top Real Estate Agent – Exceptional in Service and Overall Satisfaction by Gulfshore Life Magazine in 2012. He is the broker of Gulf Pointe Properties, Inc and has over 8 years experience in the SW Florida Real Estate Market. He is a member of The Naples Area Board of Realtors, Bonita Springs – Estero Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, The Florida Association of Realtors, The National Association of Realtors, and is nationally certified in Feng Shui for Real Estate. Need real estate help? Please contact Gabe at: 239.825.2234, Gabe@GulfPointeProperties.com or www.GulfPointeProperties.com