Price, Condition, Location

These are the three major terms when valuing real estate and determining what to buy. The three words: Price, Condition and Location have completely different and separate meanings. All three are critical components in today's real estate market and here in Ohio, more and more they're taking turns leading the list. There's been a popular real estate term even used to make television shows, "Location, Location, Location" While location is certainly a part of a property's current and future value, today, many buyers are considering price and condition as being just as important if not more.

Price seems to rule the modern search and ultimately decide what a buyer will buy. A good deal after all, is quite an alluring incentive to purchase real estate or a home. Some buyers are overlooking condition and location and going straight for the price and the amazing bargains in this Ohio and national market. Ohio Investors often use price to determine what they purchase as well. This leaves out the condition and location from the magic three. At the right price, condition can come later and the location or area can either improve or it's not a considerable factor. Price of real estate is driven by many things. The location or market may be declining, a seller may be desperate and very competitive, the home may require major repair or the home seller may just not know the true value or care. Yes, some sellers don't care about making a profit or pricing the home at its real value. We see this at times with estate sales. Often, the property is paid in full and the family or attorney handling the sale is more interested in dumping the liability and closing, than making a top end profit.

Condition to some is an important driving force when looking for a home or making a final decision. Some just aren't handy or don't want to remodel. They might be willing to sacrifice price or even location in order to reap the benefits of a home in tip-top shape and ready to go. There are many reasons why the condition of a home outweigh price or location. Not everyone views real estate as a long term investment or a business. Some only look at buying a home for their own personal or family's needs. Relocation will often times drive a home buyer to purchase a home for its condition as many who are busy and relocating don't have the time or want to spend the time fixing up a home or make changes. Some don't consider area or location but rather put the condition of the home first. The condition of a home can also change the current and future value depending on it's current state. Buying a home in bad condition and putting money into it can make you money. Buying a home in great condition and then living in it for years can actually lose you money. Remember, each home is unique and each situation differs.

Location has been a leader on the top three list for years. If home prices are increasing in a certain location, buying at full price or above is common and finding a fixer upper is like finding gold. Determining a location's expected increase in future value is not easy or guaranteed. Many locations can top out and it may take quite a while to see these homes increase in value if you purchased at the top. Ultimately, finding a home in a good location depends on your definition of a good location. Schools, amenities, parks, neighborhood, city services and housing styles fluctuates from buyer to buyer in order of importance. Not all require the same thing, so finding a home in what you perceive to be a good location may end up moving to the condition and price category in order to make a final decision.

While price, condition and location may go hand in hand in many real estate situations and home purchases, they often ride their own rail when factoring in your requirements, needs and wants. Before starting the home search process, it's important to ask yourself what you really want and what is important. Each buyer has their own needs and each property fills a different need. Understand that you may not get all three neatly wrapped up with a pretty bow. You may have to sacrifice one for the other and sometimes two. Finding price, condition and location fitting your needs all in one property, is like hitting the real estate jackpot. With the changing home market in the Cleveland, Ohio area and around the country, searching for the right home or investment property has somewhat changed. The previous standard rules of thumb aren't necessarily the same. Using guidelines and rules of real estate may help while buying a home but make sure the property you're looking for and select fits your needs and is a good purchase for you regardless of the traditional standards.