Yesterday, I was at the Strawberry Festival and got to talking with some people. We talked for awhile and the conversation turned to real estate. One of the men began discussing a piece of property he regretted not purchasing.
"You know, I could have bought that piece of property 20 years ago for cheap. And, I mean really cheap."
"Well, why didn't you?," I asked.
I chuckled. That wasn't the first time I've heard someone use that expression. And, I know it won't be the last.
When people say they could have bought a property years ago, why didn't they? At that time it probably seemed like a lot of money. And, they didn't know what the market was going to do; where it was heading, up or down.
Hindsight is 20/20. It gives us crystal clear vision, doesn't it? We know now what the past holds. We've been there. Done that. We've lived it. It played out before our eyes. We saw some buyers buy and we saw potential buyers do nothing. So, today it's easy and comfortable to say that you could have bought property 20 years ago... There's no risk in saying those words. We already know what the past holds.
But, what if I told you that then is now? It will again be 20 years ago, in the future.
Twenty years from now will you be the one saying that you missed a buying opportunity?
If now is then, then why doesn't it feel easy for some to jump in and buy today? They don't have a crystal ball to tell what the future holds. It may look like a lot of money today. But, compared to what? Prices in 2000? Surely, not prices in 2005-2006. Prices have dropped, and in our area they've dropped substantially in spots. Interest rates are still historically low. The government is offering tax credits for first time homebuyers, and for move up buyers. It doesn't get much better than this!
I know that every now and then we will hear people talk about the missed buying opportunities in the real estate market. Some are still talking about the missed selling opportunities at the peak of the market.
Oh, if only that crystal ball worked all the time!
Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate
Brevard County, Florida's Space Coast Real Estate & Investing
I specialize in Residential, Investment & Relocations.
We have a team of professionals that can help facilitate your Short Sale.
I buy, sell, rent, own and manage Investment Property.
I couldn't agree more, Sandy! Most folks in your area have been hit pretty hard, though, with the recession, from what I understand.
I would love to be one of those purchasers, but need just a little more $$$. Perhaps I'll still pull it off?
I had two buyers who got their offers accepted today on homes that had been around, but were really nice! Where are all the others who are buying? I thought this was going to be in the middle of the "rush!"
It's funny. There was property that I looked at 20 years ago that was "cheap" but I couldn't afford it then. When my income reached a level when I could afford it the property was to expensive. Guess what? Now I've discovered that even though my income is enough and the property is cheap enough I don't want it anymore. What a cycle :-)
Hi Sandy, You are so right. I think most buyers who are buying today will be happy they did in 20 years. There are a lot of opportunities out there. I think some buyers just don't have enough confidence in the economy to move forward. We really need to work on that crystal ball. :-)
Sandy, You are SO right. Especially when the original homes sold here for under $10,000. It's funny but even with the housing market, people are complaining about the prices they are getting and I mean original owners :)
Sandy,
I wish I had a dime for everytime I have heard that said..... I would be able to buy just about anything I want.
Ann Hayden in Wildwood, MO
Sandy - Great story! I just read today that Florida's median price is about HALF what it was in 2006...
Sandy
If we would have purchased real estate 20 years ago we would be rich. What would happen with the real estate that we buy today 20 years from now?
Good luck and success.
Lou Ludwig
So true Sandy. These same folks will be saying the same thing 10 years from now about today!
Sandy,
You know if I had bought all the property where Disney World is located back in the 60's, I would be wealthy today.
Dagny, Brevard has been hit hard. Our prices increased by 180% in a five year period of time, and have fallen back to more realistic levels.
Cindy, Isn't it funny how perception can change with time?
Mary, I think some are concerned about the economy, there's no question about that. True, I'll have to get to polishing that crystal ball.
Carole, I remember when homes prices here were $30K in some areas. We scooped up a couple of those properties and still have them today.
Ann, I know. I hear that quite often too. What would you buy with all those dimes? A fancy car? A boat?
Wendy, That's what we are hearing. The prices have been cut nearly in half in some areas. The deals are out there.
Hi Lou, The real estate market is cyclical, just like the stock market. It will rebound again.
Gabe, I believe that you're right about that!
Our prices have been going back for some time now. If they act now they will be able to brag about how samrt they were in 10 years!
Sandy, I get annoyed to a degree when my Sellers can't let go of the past. There is nothing they can do about it now so I try to get them to think forward. I should just buy them their double brimmed hats for when they become the Buyer. Seller side with a frown and Buyer side with a smile. In 20 years I sure as heck hope they're still smiling!
Sandy,
I would have to take a trip on those dimes!
Ann Hayden in cloudy Wildwood, MO
Gary, I think you're right. People that buy today will have bragging rights in 10 years about the great deal they got in 2010.
Kevin, Funny, it does depend on which hat they're sporting, as to which face their wearing...whether they are a buyer or a seller. Often it's tough for these people to let go of the past.
Ann, A trip sounds good. Let me know when and where you're going -I'll meet you there.
Oompa, you never know. Only time will tell.
Hey TOTO, I suppose that only time will tell.
Sandy - I must say that I like the looks of that sprouting coconut. . .I don't believe I've ever seen anything like that before! It would be neat just to have a few of those around as landscaping decorations!
Coconut palms aside, your absolutely right about 20-20 hindsight vision. I remember being in my 20s and watching a girl and her husband that I went to school with, buying duplexes and wondering why. I have helped them sell those duplexes over the last few years, and they made a fortune on them, and are now very comfortably retired, and worry free!
Sandy,
I think going some place sunny would be a good idea with fun things to do....
Ann Hayden in Wildwood, MO