Are there any deals out there?

First, what is a deal? If you pay more for something than the seller asks for it, did you still get a deal?

Typically, we think of a deal as something we spent less on than what it's actually worth. A piece of clothing that is on sale. Haggling a car dealer down on his price. But is that really the true deciding factor? Who sets the "worth" of that item? The worth of something is not determined by the person setting the price, it's value is determined by what someone is actually willing to pay for it. 

When it comes to houses, we use a formula...we look at similar homes that have sold nearby within the past few months, make comparisons that drag the price up or down, and settle on a #. Using this logic we haven't seen many "deals" in a couple years because most things sell for at, or over, this price.

I'd like to look at this from alternative view, though. Another way of calculating a deal. A home is an asset, and most other purchases are liabilities (i.e. a car). Assets put $ in your pocket and liabilities take $ away. Because assets grow our $, we need to consider the growth in value over time when calculating whether or not a home is a deal.

Talk to anyone that has owned their home for more than 6 months and they'll tell you they got a deal. They are comparing the value today, to what they paid, and realizing the number has grown significantly. 

Using these perspectives, I fully believe there are still many deals out there. 

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