What are the 3 P’s of real estate? The 3 P’s of real estate are Property, Price & Process. You must consider ALL of these when buying your first home, as they all play an integral part of the first time home buyer process.
“Property” concerns the location and structure. First time home buyers should be asking themselves questions about the area they’re buying in. What are the school districts, what is the owner-occupancy rate, how walkable is the neighborhood? You should also be evaluating the structure. Were quality materials used, how has the property been maintained, will this house last longer than my 30 yr mortgage?
“Price” is obviously important as well. You should be asking yourself, is this price in my budget, how does it stack up against other properties in the area, and how affordable is the monthly payment for me?
“Process” is probably the most overlooked item. Most first time home buyers write an offer on a home solely based on the first two criteria, property and price. However, process can affect how much of a hassle it can be to close the transaction, or even if the transaction will close at all! Process is generally dictated by the seller, so normal transactions, bank-owned/foreclosures, short-sales, etc, will all have DIFFERENT processes. Regardless of how nice the home is and how well it’s priced, the process involved may not align with a first time home buyer’s needs.
Don’t make the biggest decision of your life without getting educated first! If you’d like more information about the 3 P’s of real estate or buying your first home in general, please go to our Calendar/Reservations page and register for one of our FREE First Time Home Buyer/Down Payment Assistance workshops.
