By: Shmuel Shayowitz
A father said to his daughter, “You have graduated with honors; here is a Jeep I bought many years ago. It’s pretty old now, but I think you will benefit from it. But before I give it to you, take it to the used car lot downtown and tell them we want to sell it. Let’s see the price they offer you for it.”
The daughter went to the used car lot, met with the manager, and waited while they looked over the car in detail before they would give her a price. She returned to her father and said, “They said it’s old and looks worn out. They offered me $1,000.”
The next day, the father said, “Please take the Jeep to the pawn shop on Main Street.” The daughter went to the pawn shop and waited patiently while the owner examined the car before he would give her a price. She returned to her father and said,” The pawn shop offered only $100 because it is an old Jeep.”
The next day, the father asked his daughter to go to a specific Jeep dealership and show them the car. The daughter made the trip to the dealership as requested. She returned and told her father, “There were executives in the showroom who offered me $100,000 for it because it’s ‘an iconic Jeep’ and highly sought-out by many collectors.”
When I heard this story, I knew I had to share it. To me, it’s yet another reminder that those who recognize true value are those who will pay the correct price. When you appreciate value, you realize its worth.
We are in a shifting housing market with much noise and confusion. The media is trying to grab our attention by exaggerating negative headlines, causing panic and confusion. Some disingenuous real estate agents are scrambling to pick up whatever business they can through perpetual pressure tactics. Unscrupulous mortgage professionals are taking advantage of unsophisticated applicants through deceptive facts about financial market conditions. The list goes on.
What’s worse is that many potential home buyers who are not being adequately educated and advised are abandoning their home search, believing it’s the wrong time to buy a home. So many people have lost out on opportunities because they were misinformed about the market. I am not saying there aren’t things to be mindful of when buying a home in today’s market. There is plenty that one needs to consider. I am, however, cautioning people to be cognizant of the value of experience, knowledge, and expertise as you evaluate any expenditures that you take upon yourself.
Oscar Wilde is often quoted as saying, “These days man knows the price of everything but the value of nothing!” One could only imagine what he would say today with the information readily available to the general public.
Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at Shmuel@approvedfunding.com.
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