I sell residential properties in Destin Florida, these are resort properties, second homes and income producing vacation properties along the Gulf of Mexico. I have done this since Hurricane Erin & Opal, during Hurricane Ivan and since Hurricane Katrina. Let yo in on a little secret people love the Destin Beaches and they are not going to stop loving the Destin real estate.
What do you think happens when you buy real estate? Talk about the good Ronald Regan "Trickle Down Economics"; it affects everyone from the sellers to the lenders to the grocery store clerks to the waitresses, it affects just about every facet of our economy. Housing, not the stock market, not the auto industry and not the oil industry drives this economy.
The sooner we get it, the sooner we get our arms around it the sooner the greed ends and the sooner we realize that we are all Americans-Neighbors-Family the sooner this economy will recover.
I still am talking with a lot of sellers who still say "I'm not going to give it away" and I still am hearing from buyers saying "I haven't seen the housing market hit rock bottom". Frankly I have to tell both of them Mr. Seller 2005 has pasted and if you did not sell your property at some ridiculous price then its not going to happen now, next year or the year after that. The buyers I find myself asking how you will know when we have hit bottom and they tell me "I'll know". I say they will not know and I tell the sellers; Mr. Seller you will see no appreciation this year, at best you may see a 2% appreciation rate in 2010 and perhaps a 4% appreciation rate in 2011. So tell me Mr. Seller how long will you have to wait to see a selling price that you would find acceptable and how much is it going to cost you?
Here's the plan, sell now, take your losses and buy now and make your savings. Old Chinese Real Estate Proverb; "You Make Your Money on the Buy not on the Sell". Nothing has changed here this philosophy stands true. Whether we are within 2% or 5% of the bottom is immaterial. If we have reverted to the traditional real estate investing concepts, (which we have) then you should be buying for the 5-7 year hold and in the general scheme of things the 2-5% at or around the bottom of the market is a non-issue especially at these interest rates. And Yes lenders are lending money to buy real estate and at great rates.
Once people start to buy and inventory starts to come off the market don't you (Mr. Buyer) think that sellers will be less inclined to negotiate? And Mrs. & Mrs. Sellers don't make the same mistake you made this time last year when you saw a small spike in sales believe its time to increase your prices - negotiate aggressively.
So here is the Stimulus Package - Sell now, take your losses and Buy now - make your money; best part of it all is you will be helping this economy.
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