Buying Real Estate and Playing Monopoly
The game Monopoly might be a surprisingly good training ground to prepare you for buying real estate, and playing Monopoly with your kids could be a great teachable moment. Take the time during the game to throw in some real world pointers, and you might find yourself learning along the way.
Your family has decided to play Monopoly. grab a snack and a drink because the game, just like real life, is going to take a while. :)
LESSON: Buying real estate is a process. Getting pre-approval for a loan, finding an agent that’s the right fit for you, searching for homes, submitting an offer, maybe submitting another offer, the home inspection, property paperwork to go over, and getting final approval for your mortgage before you get the keys. Conclusion: buying a home can take some time, focus on all of the great reasons you decided to buy a home. Staying in close communication with your agent throughout the process will help, too.
2. Neighbourhood matters
Everyone starts the game with one corner in mind: Boardwalk and Park Place. The highly priced properties have the best returns on investments, and the players who snag them first tend to do well in the game.
LESSON: Location is often a major consideration in real life as well. Home values, your lifestyle and so much more are factors in your neighbourhood choice. Work with your agent to learn all you can about the neighbourhoods that pique your interest.
3. Keep an open mind
Baltic and Mediterranean Avenue have a bad reputation because they’re the cheapest properties on the board, but they are also opportunities. Add a few houses and hotels and your return could be bigger than the one on nearby Connecticut Avenue.
LESSON: Keep an open mind when shopping for a home. An up-and-coming neighbourhood may have appeal you didn’t see before, and more value for your budget.
4. Be prepared
You’re a Monopoly mogul! You have a handful of desirable properties and a steady stream of income from your houses and hotels. Then comes the Chance card: “Make general repairs on your property – for each house pay $25, for each hotel pay $100.”
LESSON: You never know what card you’re going to draw. But unlike Monopoly, the real world has home insurance available to help you prepare for unexpected repairs and disasters. A variety of plans, customizable to any budget, are available.
5. How to win a bidding war
Trading properties keeps Monopoly exciting. And there are no strict rules as to how a seller determines to accept an offer. Sibling rivalry, bribes involving candy or even business sense can play into a player’s decision.
LESSON: Sellers don’t always accept the highest offer. Writing a letter about why you fell in love with their home can sometimes sway them in your favor.
6. The importance of strategy
Monopoly is a game of strategy, but few players to study ways to win. What if you had a coach sitting next to you, advising how much to bid for a property, where to look next, and whether or not mortgaging a utility to buy Boardwalk is a smart idea? You would be unstoppable!
LESSON: Buying a home is an infrequent occurrence; for some it happens only once in a lifetime. Wouldn’t it be helpful to have someone on your side who was up-to-speed on current market conditions, knew which neighbourhoods would best fit your lifestyle and ensured the contract you enter into has your best interests in mind. That’s the value an experienced agent provides.
Contact Team Leo: 604-936-1111 or firstname.lastname@example.org for all your buying and selling needs.