What does a threshold price buying a home mean or matter?
A threshold price is one at which you can be confident that you are offering a fair price and that, in the future, if the market does take a downturn, your financial world will not be turned upside down.
I have been in several offer situations, won some, and some say ‘lost some,’ but my clients can’t lose something they never had. My clients and I do a threshold price and stick to it; we try to keep the emotion out of it and avoid one of the biggest motivators in the world, “fear of missing out.”
Not too long ago, homes received 7-15 offers without conditions, and some homes sold 12-18% over the asking price.
Jim Rohn wrote: “The pain of discipline weighs ounces; the pain of regret weighs tons!”
Speculation is dreaming, and though we read about the money that less than 5% of speculators say they make, we very seldom hear about the other 95% of speculators who lose. It may not be in the short term, but second and third consequences can come back and haunt you.
History does not repeat itself; only humans do.
I have rearranged one of Warren Buffet’s beliefs and changed the word stock to property: “It is far better to buy a wonderful property at a fair price than a fair property at a wonderful price.”
If you are in the market to buy a house or a condo in the London, Ontario, area and want a prudent advisor and Realtor to help you with your threshold price, what more can I say?