A couple of items caught my attention these past couple of days and got me thinking about the concept of “value”. The first item was Warren Buffett’s statement related to how he’d buy up a couple hundred singe-family homes right now, if he could (and as an aside, I think he actually could—here’s hoping he gives me a call if he’s house hunting in Ponte Vedra).
I think Mr. Buffett’s statement speaks to the analytical, numbers-driven definition of “value” that we all jump to right away. After all, “value” is something that can be quantified, right? It’s about the numbers, so there must be a mathematical equation that always let’s us see the exact “value” of an asset.
But then I read this blog post from the folks over at the KCM Blog. And I was reminded again of just how subjective the idea of “value” can be. This is especially true in the housing market, as the KCM Blog so eloquently points out.
The most important question I ask every new buyer or seller that I work with is this one – “Why are you moving?” The answer—whether it’s for a new job, better schools, more room, closer to the beach—tells me a lot about their motivations. It means we’re not just talking about the dollars-and-cents “value” of a home. We’re talking about the things a person, a couple or a family value the most.
This is a much bigger discussion. It’s “Values” with a capital “V” and an “s” on the end, vs. little old “value”. And when we start thinking about our “Values”…who we are, who we want to be, our families and friends and the things that really matter in our lives…that dollars-and-cents definition of “value” starts to look a lot less significant.