Thursday, March 19, 2015

Unlocking the hidden value in Real Estate

Unlocking the hidden value in real estate!

My name is Rick Saunders. I am a real estate Broker with Lord and Saunders Real Estate located in McLean, VA. I began selling real estate professionally in Northern Virginia in 1978.
I grew up in Arlington, VA and one of my earliest memories I recall as a child of three is the construction of one of my relative’s homes in Great Falls, VA. I recall my extended family making a big fuss over my desire to push a simple concrete block that was in front of me. Many of my loving and doting loved ones were concerned and some were convinced that I was going to injury myself by simply leaning on said block. Undaunted, I continued pushing but to no avail.

Over the years this instance as I recall it, is a vignette, illustrative of what I would later dedicate my career to accomplishing. Not pushing a block of concrete mind you, but dedicating myself to understand what many of my family members clearly understood and that is the remarkable value of Northern Virginia Real Estate.

Today, I would like to begin to touch upon online one of my favorite topics: unlocking the hidden value in real estate.  

Perhaps, some of the greatest decisions we make financially in life is the property we chose to buy or sell. Most that I have observed over the years accomplish little more than what I was attempting to do with the aforementioned concrete block. Purchasers often decide to buy or sell in a manner consistent with my desire to move that block, the block is representative of the real estate market. To their amazement the market doesn't respond as they desire.

To move the block requires power which as a three year old I did not possess. To move the real estate market requires a similar power. Not brute strength but the power of clearly understanding the task at hand.

Every property has strengths and weaknesses. There is no perfect Home, Town home or Condominium. There are however, numerous opportunities frequent unseen virtually in every instance.  Thus our topic: unlocking the hidden value in real estate.

There are so many directions I could go regarding this subject the challenge I have is to determine which to discuss first to keep it interesting. When I am with a client it is always interesting because whether they are a Seller or a Buyer their own interests are being specifically discussed and they stand to profit from said discussion. 

I am going to begin first illustrating the power of leverage. I will discuss it from the Purchaser’s point of view first. All of us Purchasers have something universally in common. We want to buy low and sell high. To do this requires a combination of a couple things. First a low demand for the item and then a greater demand. How can that be you may be tempted to ask?  It is elementary as Sherlock Holmes would respond to Dr. Watson’s similar question. The answer, in this example, is we purchase a property that is in low demand, perhaps, due to its condition and remodel it thus changing its condition and its demand.  

To do this requires skill and knowledge 'tis true, all of which I can help you with. The leverage in this instance comes from the low demand due to its condition and the Purchaser’s ability to finance the improvements also thus altering its condition and thereby creating a higher demand.  This is a slice of one example for you to consider when choosing whom to work with as a Seller or a Buyer of Northern Virginia Real Estate.

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