I Love this Place: The Importance of Neighborhoods in Home Purchases William Shakespeare, in his infinite wisdom, once penned: "Love looks not with the eyes, but with the mind". Let's explore this for a moment, with a practical example. Everyone, at some point in time, has shopped for a new brand of laundry soap. You stand there in the aisle, looking at the multitude of options before you, wondering which one will actually meet your standards for laundry care. There are brightly-coloured bottles that catch your eye, but, in noticing the brand name, you move on, searching for a name you can recollect, in packaging, scents, and options that would realistically meet your needs. You finally choose one, and although it costs a bit more than the other bottles on the shelf, you feel confident in your purchase, as it appears that it will achieve the results you desire. Going through this process, you have supported Shakespeare's statement, as it was your mind that chose the soap based on the practicality of it, how it would help you reach your goals and standards, and less about what was pleasing to the eye. Real estate buyers are much the same. In this case, though, houses and, more importantly, neighborhoods, are our deciding points. Right now, think of a neighborhood in your community that you would never, under any circumstances, live. Now, suppose that your 'dream home' was suddenly available within that neighborhood. Would you buy it? Likely not, due to whatever negative associations that neighborhood holds for you. Now, think of a neighborhood where you would love to live. How many concessions would you be willing to make to find a home within that neighborhood? For most people, there are quite a few. That big jacuzzi tub is not a necessity; that shed is something that could be added later; appliances can always be purchased separately; an office can be made in the corner of the den, rather than having that extra bedroom for it. People buy into neighborhoods in their mind before they even look at a house. If in love with the neighborhood, the houses will look that much nicer psychologically. In neighborhoods where they are unsure or uncomfortable, a gem of a house for a great price is not worth it to them, as the perceptions of the surroundings of that home is negative. Remember the soap example? People are willing to pay more for what they think will meet their needs and satisfy them, rather than anything else. To really understand what buyers are looking for, it is not only about asking them questions to determine the house they want, but also questions about the type of neighborhood they desire. What value do they place on having nearby parks, schools, shopping ammenities? What intensity of traffic, noise, people, crime, or weather is acceptable to them? What community values are important to them? In discovering this information, and knowing as much as you possibly can about the neighborhoods you service, it will be easier to determine which houses will make them the happiest, not only with their purchase, but also with you, their real estate professional. - Tanya Spilchak, Point2 Education Coordinator |