Boise Shift in Real Estate and the "Why" Factor
Three years ago the question was "What is the price of this home today," but times have changed! Now the question is "What is this home worth and why?" Why is an important question because if you don't know the answer you dont have enough information, or are you making a decision based on emotions? Although buying a home can be an emotional decision, making decisions based on emotions may not get the best results. "Why" can help you better understand your needs and wants as well as reveal emotions about a home. The "Why" factor is all about the market value of a home.
Why should you buy this home and why should you pay this price? When the market is soft, buyers have more choices and time to research and compare. This means that developers, builders and REALTORS must answer the question “Why” or they will not sell their homes. It is hard to fool today’s home buyer who has access to so much information and is asking so many questions. Today’s serious home buyer is spending hours online and will view over 50 homes before making a decision.
When the real estate market was hot, builders and developers created new subdivisions and homes as fast as possible to meet demand but now they have to create that demand by bringing the best possible communities at the best possible price to market. This means they are offering more value to sell homes than ever before. When a home has nothing more to offer than 3 Bedrooms and 2 Baths, there is not much value. Start adding in open space and amenities, and developers very quickly start to answer “why.” Builders and developers realize, in a competitive market, they must increase value. The good news is they are adding value and offering more value in new home buyers than ever before.
Why does a community have value? Communities offer great amenities like parks and walking paths, possibly a pool or even lots by water. These amenities expand the immediate boundaries of a home and its immediate value. The real value of a community though, is the lifestyle it offers and pride in its residents.
The ability to enjoy where you live outside of your home and backyard is very important. Families enjoy taking kids to a park or just getting out to walk. Not having to pack the family up is much more convenient. It is more than that though. Would you put the name of your community on a bumper sticker? It is easy to see when someone is proud to live in a certain area. People do not tell you they live in Boise if they live in Hyde Park or on Harrison Boulevard, for example. Home Owners are proud of the community they live in and will tell you. If there was a sticker that said “I am a citizen of Hyde Park,” how many in that area would proudly display it?
Communities are a lifestyle! Several communities including larger master-planned communities intend to create that level of pride and belonging. Are you looking for a community that provides lifestyle and pride or just a place to park your car off the street?
Why a New Home? It is all about value. The average price of new homes has drawn closer to the price of existing real estate in recent months. Why buy used when a new home is comparably priced and comes with new appliances, a fresh coat of paint, and a warranty? Many new communities offer more value. It is a competitive market and developers are doing everything they can to make their communities more valuable for their price point than other communities. Not only do they want you to buy, they want you to stay and enjoy it, as with any business, customers are the best salespeople and if you like it, you will tell others how proud you are to be part of a great community!