What is the Real Estate Rule of Three?
Have you ever heard of “the rule of three?” Even if you haven’t, the rule of three has probably influenced some important stories or ideas that you hold dear. In storytelling, the rule of three means that people better understand concepts, situations, and ideas in groups of three. Think of Goldilocks and the Three Bears or the three acts of a play. There is also a rule of three when it comes to survival: You can last three minutes without air, three hours in extreme heat or cold, three days without fresh water, etc.
But did you know that there is a real estate rule of three, also?
The Real Estate Rule of Three
The real estate rule of three states that three factors determine a property’s suitability: Location, price, and condition. These are the three most important variables that determine a property’s availability!
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Location:How close is this home to your job? How close is it to amenities—such as restaurants, museums, or nightlife—that you value? Is it in a hot neighborhood? Is it located on a corner lot? These aspects of a property’s location and more can affect demand.
Price:A home’s price is one of the main determining factors in whether or not you can purchase it! A home can be priced high or low depending on many different reasons, but a seller will seldom cut you a deep discount on the list price for any reason.
Condition:The condition of a property is determined by how old it is and how well it’s been taken care of. Some old homes are in excellent condition, and some new homes might be wrecks. Whatever the situation, it will affect how easy it will be to buy or sell.
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Why the Real Estate Rule of Three Matters
The real estate rule of three matters for one simple reason: Unless you have unlimited time and money, you must compromise on one of these three things to buy a home that works for you. For example, if you want to find a home in the perfect location at a great price, you’re almost certainly going to have to accept a home that is not in excellent condition. If you want a home in great shape in the ideal location, you’ll have to pay a lot. And if you want a home in perfect condition at a great price, you will have to accept a location that is not ideal.
Which of the three are you most willing to compromise on? This is a question every home buyer or renter must ask themself, and the answer might be different from year to year. Much depends on your finances and other needs and how they may change over time. Only one thing always stays the same: You will never find a home in a great location in excellent condition for a great price. The absolute BEST you can expect is to find TWO of these attributes in the same house.
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That’s right: Buying or renting a new home in Houston is a compromise. That may sound like a total buzzkill, but as an experienced HoustonRealtor®, I can assure you that this big city is FILLED with great places to live—compromise and all. You may know which area you’d like to compromise on before looking for a new home, or you may only figure it out once you’ve seen a few places. If you are willing and able to compromise on one of the three from the rule, you will end up with a Houston home you are happy with.
Are you ready to find a new home in Houston? Let’s talk about your options! Living Vogue Real Estate specializes in helping people find homes that suit their unique needs. After a fast, free consultation on what you’re looking for and what you’re willing to compromise on, we’ll send you a list of housing that meets your requirements and set up appointments to see the ones you like best. Contact us now to get started!
