Like many areas of life, the real estate business has its fair share of sayings and clichés.
The most common is “location, location, location” because it’s an essential facet of any property purchase. Another favourite is “going, going, gone” for when houses go under the hammer for auction.
But other popular phrases are perhaps not well understood by everyone yet represent essential elements of buying a property.
Below are the explanations of a handful of phrases that you’re likely to hear once you enter the property market.
- Buy the worst house in the best street – This is all about buying in a good location while also being able to add to the value of the property. Improving your home is within your power, but enhancing your street is not. It’s a good idea to heed this wisdom, especially if you’re on a budget.
- Million-dollar views – Sometimes, the views can be worth a million dollars or more. Never apply your personal value to these views. Maybe you’ll grow bored or complacent with them after a year or two. But they’ll always add an inherent value to your property.
- Value exists in the land, not the building – This can be difficult to appreciate, especially if you’re viewing a beautiful home. However, this phrase tells you that the asset is the land, and the liability is the dwelling. Buildings cost money to maintain and decline in value as they get older. Conversely, land appreciates over the years. This is why prices for houses rise faster than those for apartments.
- Think ‘time on market’, not timing the market – Trying to pick the optimal time to enter – or exit – the market is fraught with risk. The best advice is to move when you’re ready. When you do so, the prevailing conditions will also affect your subsequent purchase. More important to notice is “time on market”. If this time is high, it means properties are taking a longer time to sell. For a seller, this may mean you need to negotiate on the price, while buyers can negotiate a little harder. When the time is short, sellers are in control, while buyers need to offer more to win the property.