Real Estate Term of the Day: “Location, Location, Location”
“LOCATION, LOCATION, LOCATION” – the “three most important things about real estate”; a popular statement that emphasizes the importance of location with respect to the value of urban real estate (Barron’s Dictionary of Real Estate Terms)
But is it all about location, location, location? I was recently attending a CRS class entitled: Listing Strategies for the Residential Specialist (CRS 201) and was presented with the idea of replacing the notion of “location, location, location” with “price, price, price”. “Price, price, price” suggests that price is the overriding factor and not location as previously thought. While I believe that location is a very important consideration, I do know that a knowledgeable buyer would still consider price above all. If for example, a stunning home in the heart of Cherry Creek is priced 2x higher than the market will bare, almost all knowledgeable buyers would not sacrifice the extra money for the location. Price in this case is the overriding factor. On the contrary, if you have a home that sides to a major street or with another major obsolescence but is priced 2x below what the market will bare, a knowledgeable buyer might be inclined to purchase the home. This buyer understands that a similar home in the area without a major obsolescence would cost them 2x more. Price in this case is still the overriding factor.
What do you think? Is “price, price, price” the new “location, location, location”?