May 7, 2009

Real Estate Is Local

If you're going to fly to California, and are packing your clothes, are you going to check the weather in Connecticut to help you figure out what you should wear once you get there? Well, I hope not!
Real estate is like the weather - it's local, and what prices are like in Indiana or Michigan really doesn't have much to do with what prices are in Connecticut, or vice versa. Sometimes I meet clients who are from another part of the country, and are shocked at the price of a home here. Some will come to me with a set price that worked where they used to live, and are very dissatisfied that they haven't been able to find the same thing here.
But if you buy a house here, you're also going to sell that house here, and whatever the price range is, your price when you sell it will be equal to what other houses like your house here will sell for. So in effect, it's relative, and while there may be sticker shock finding your way into a neighborhood here, when you sell you'll still be selling in this area, and maybe able to buy in a completely different area where prices are back to what you consider "normal".


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