Buying at the Right Price - Principle of Progression

Posted on September 12, 2008 
Filed Under Buying Your New Home, Valerie Zinger

What is the right price for a house? 

No matter what the offering price is that the home owner has chosen, the right price for you (the buyer) is what you are prepared to pay and the owner is prepared to accept.  How do you get to that price?  There are several principle of value that consciously or sub-consciously play in arriving at the price. Here is one of the Principles

The Principle of Progression says that, where properties are dissimilar, the poorest/smallest property will benefit in value from its proximity to the larger more expensive homes on the street or in the neighbourhood.

What does this mean?  If there are two very similar homes but in different neighbourhoods, expect to pay more for the house in Rockcliffe than the house in Hintonburg.  The smallest house on the best street in the neighbourhood will be more valuable than the same house two streets over. 

If you buy the worst house on the best street, expect to pay a bit more.

Photo credit:  Big house, LIttle House @ http://www.flickr.com/photos/daryl_mitchell/2407030202/

Valerie Zinger ~ Ottawa, Canada ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca

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