People will use the term "that is expensive" very liberally without actually thinking if this is what they really mean. There is a difference between expensive and highest priced. Just because something is highest priced does not necessarily mean it is expensive, if the product is providing value then the cost is irrelevant. You can buy a low-priced product that is expensive because you are continually having to replace it.
Yesterday, I was looking at sales data for the last quarter of 2011 for various townships in our area of the Main Line. In Radnor township the highest priced home to sell was $2,900,000, many people would say that is an expensive home, but actually I found another home that was much more expensive priced at $675,000.
Why was the home for $675,000 more expensive, because looking at price per sq foot, this lower priced home cost a LOT more than the average price per square foot for the township, by $123 per sq foot and $21 per square foot more than the highest priced home in the township. I am presuming for the buyer the home provided the value they were looking for from the location and the lifestyle the home was going to allow them to enjoy and that outweighed the extra cost, and maybe they did not consider it expensive because of the value they were going to receive from the home.
So remember next time, cost is not the same as value, and higher price does not necessarily mean the house is expensive, you really need to look at it in several different ways to decide if this home is the right one for you and if the price is right. Good luck and if you need help looking along the Main Line for homes that are priced right give us a call.
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