I saw a used bicycle on Craigslist that I was interested in possibly purchasing. The listed price was $600. I decided to price shop similar new and used bikes on ebay and google shopper.
The used bike on Craigslist was $150 less than a new bike on Google Shopper. I could get a used bike on ebay $250 less than google shopper. The ebay bike required me to purchase additional equipment. I felt that it was not worth my time, energy and the hassle of making the bike ccomparable to the other bikes. Besides that I didn't know if I could match the color, obtain the correct sizes or parts or if my husband could assemble it with ease.
I offered and subsequently purchased the bike on Craigslist for $450. I then realized that this was an example of economic depreciation, a concept I learned several years ago.
There are two types of depreciation that are typically considered: accounting and economic. Accounting depreciation is used to amortize the expense of an asset over its theoretical lifetime in order to match against expenses. Economic depreciation is the depreciation of an asset that the market, or a consumer is willing to pay. The ebay bike seller was introduced to economic depreciation.
Consider economic depreciation in the current housing market. Homes have had an economic depreciation for a number of factors: decrease in the availability of capital to purchase new and existing homes, decrease in consumer confidence and in some areas, an over supply of homes on the market. That being said, there are great deals in the real estate market.
My bike purchasing experience provided me with additional insight into the decision making processes buyers make when purchasing a home. Many buyers are shopping on the internet first. Most prefer to negotiate on a used property, rather than paying full price on a new. Sellers providing discounts for repairs, tile, carpet, paint, landscaping are being by-passed. Unless a foreclosure with tremendous discounts, many buyers appear to want it all done rather than taking the time to upgrade the items that were neglected by the seller.
If you looking to buy a home or sell a home in Sun City Grand in Surprise AZ, please contact me or visit my website at www.LEOLINDA.com.
I am a year-round Sun City Grand resident and a full-time Associate Broker Realtor®.
Leolinda Bowers
Associate Broker
Ken Meade Realty
Cell (602) 403-6865
Business (623) 937-5701
Sun City Grand ~ I live here, I work here, I know this community!
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About The Author |
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© 2010 Leolinda Bowers (Arizona Retirement Communities Sun City West & Sun City Grand Real Estate). Unless otherwise noted, the content, both pictures and written, is the property of Leolinda Bowers. Reproduction in part or whole without written permission from the publisher is prohibited. |
Leolinda Bowers TM
Associate Broker
Ken Meade Realty
Cell (602) 403-6865
Business (623) 937-5701
http://leolinda.com/
If you are thinking of buying or selling a home in any Phoenix Arizona retirement community, consider hiring me as your Realtor®. I am the 2011, 2010 and 2009 Top Producing Agent in Ken Meade Realty. In 2011, I successful closed 71 transactions. As a year-round Sun City Grand resident and full-time Associate Broker Realtor®, I am familiar with Phoeniz AZ retirement communities Sun City Grand, Sun City West, Corte Bella, Arizona Traditions, Sun Village, Pebble Creek and Trilogy at Vistancia.
