Whenever you are looking at property, there will inevitably be some comparisons that you have to make. There is a lot of property for sale on the market, whether we are talking Windsor Ontario real estate or real estate here in Saskatoon. What are the critical factors you need to look at when trying to decide between two or more different houses? Here are some ideas.
Price will almost always come first, but keep in mind that it may not be the most important factor in your decision. Sure, it would be nice to buy a property $30,000 less than another piece of downtown Toronto real estate, but you have to consider what you are getting in exchange for that money.
Of course, that point is moot if you can't afford it. Still, if you find that you can handle the monthly mortgage payments on more expensive condos in downtown Toronto or a detached home in Saskatoon, there may be some reasons to do so.
One of the biggest reasons is future sale potential. Sometimes, property is listed at a lower cost purely because of its location. It's by an airport, highway, rail line, or some other commercial aspect of the Saskatoon real estate scene that causes a decrease in the overall enjoyment of that property. A nicely priced piece of Riverdale Toronto real estate may be next to an arterial route, causing safety concerns for children. On the other hand, that higher priced home in a cul de sac offers a bit more safety. Houses in nice neighbourhoods tend to sell better than those in other neighbourhoods; although you pay a higher price initially, you can bet the house will increase in value over time.
Next, think about the features. Any Saskatoon or Toronto real estate agent can tell you there are certain amenities which add a lot of value to a house. A garage or shop is one of these; it's like having an extra room for activity and storage purposes. A large yard can also be worth a higher price.
Think about convenience as well. Is that lower priced home hooked up to a city water supply, or does it have its own septic field? That difference alone can save you thousands of dollars during the course of your ownership of the house.
Condition is also a major concern. A lot of people buy lower priced homes thinking they will get around to fixing them up and increasing their value. There are a couple of major concerns here. First is underestimating just how much the fixes will cost you; you may find you pay more in the end than the difference between the two homes. Next of course is the fact that many people don't get around to making those changes, which is bad when the time to re-sell comes along.
So, before you jump at price, make sure you compare all the criteria. Sometimes a higher price can really be worth paying!
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