By Byron Moore, posted September 10, 2018
Originally published in the News-Star and the Shreveport Times on Sunday, September 9, 2018.
When considering the purchase of anything, that’s usually the first question we ask. Often, it’s the only question.
That’s too bad.
Most of the time, when someone asks, “How much?” they mean, “What is the price?”
That is a useful question, but it doesn't begin to give you enough information to skillfully make a significant purchase.
Let’s say you want to buy a house. After a bit of looking around, you find two you like and are considering. So naturally, you ask, “How much?”
$100,000 for house A and $250,000 for house B.
Does the choice seem obvious to you at this point? It shouldn't, because all you know is the price.
One seller obviously thinks his house is worth two and a half times more than the other guy. Maybe he’s right. Maybe he’s not. We won’t know until each house eventually sells.