Price OR Value OR Cost

Price is ONLY a consideration when there is an absence of value. How much would you pay for something that had no value? You wouldn’t right? Let’s look at the psychology behind it…an item of value is priceless?

Value is subjective. When we see that something is a value do we ask what it costs?

Cost is key. What something will cost will be reflected in the price as it is related to value.

All sounds confusing? let’s put this into perspective when searching for a home. A home is listed for $465,,000, that is the price; the taxes are $19,517…and this seems out of balance however the location has value in its proximity (trend),the floor plan is well designed and the maintenance is impeccable. Schools are an important part of this equation since approximately 60% of that tax bill represents school tax. The town, county and village tax provides services like municipal water and sewer, parks, recreation, library, road maintenance, fire department and sanitation.

Now there is cost: With a 7/1 ARM and 20% down the cost is $3361/month.The mortgage payment is almost the same as the taxes. If you have school aged children, the $975/month paid in school tax per month is well worth it! The cost of the services is the balance of the taxes at $650/month. This is only one possibility as real estate is local and each town provides different services and each home has different taxes.***


  • Determine what the most important things about a home are for you – location, condition, proximity, floor plan
  • Seek the advice of a Realtor to guide you in the process
  • Speak with a loan officer to see what it will cost you
  • Breakdown the cost to see the value
  • Price is only an issue in the absence of value

Café Realty is a real estate brokerage, consulting and valuation services company serving sellers, buyers and investors from the Bronx to Dutchess. Contact us today and ask about our unique services. 914-302-7792 or



***Loan information provided courtesy of Matt Fiorillo/Loan Depot-Your Mortgage Master NMLS:40835 914-433-5756

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