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The State of the Market
March 11, 2010 - Dylan Renz
Everyday some one asks me how the real estate market is doing and my response is always the same, “That depends on who’s asking.”
You see if you were an investor who decided to invest your life savings in the Southwest Florida real estate market in 2005, the news is not good and does not look like it is going to get much better any time soon. You have probably lost 50% or more of your investment and most experts agree that it will likely take decades (yes, decades) before we ever see prices fully recover.
However, if you are someone nearing retirement and looking to purchase your dream home on Pine Island, it is hard to imagine a better opportunity to do so. Prices are low and steady, there are plenty of homes on the market to choose from, interest rates are at historical lows, and there are some serious incentives available to homebuyers such as the federal home-buyers tax credit.
For those of us that make a living selling real estate, busy is good, and things seem to be getting busier and busier every day. Buyers are taking advantage of this opportunity and consumer confidence in the housing market is growing rapidly. Homes are selling and that is the key for creating stability in the market.
No matter who you are, my advice is the same. Be realistic! Accept the reality of where we are today in this real estate market and then move forward with that reality in mind to make the very best of the situation. This seems like obvious advice for sellers: be realistic about price, understand that this is a buyer’s market and that buyers know it, don’t believe that you will make all of your money back in a couple of years when the market recovers. However, let me share with you a phone conversation that I had not too long ago…
Buyer: “I’m looking to buy a home on Pine Island because I’m retiring in a few years and want a place to stay in the winter.”
Me: “Great! What exactly did you have in mind?”
Buyer: “I want a single-family home, two or three bedrooms, maybe something built in the last few years. The location is very important and I would like something on the water. I would really like a pool, but I guess I could live without one.”
Me: “Perfect! And what price range were you thinking about?”
Buyer: “Well, I am not going to spend a penny over $50,000.”
Me: “Thanks for calling. Have a great day.”
True story! Well not completely true. I didn’t actually hang up on them, but I did explain that buyers need to be realistic as well. Pine Island has a tremendous amount to offer and you will pay a premium to live here and sellers are well aware that people are out there willing to pay that premium for the lifestyle we have to offer. Pine Island is not Cape Coral! So be realistic about what you are looking for and you will be amazed at the opportunities that are out there.
On a final note, I wanted to express my excitement at being able to contribute to the Pine Island Eagle as a blogger. I have been reading the Eagle since I was a child and I am looking forward to sharing my thoughts on a business that I love with the community that has meant so much to me. Whether you agree, disagree or strongly disagree with what I have to say I would love to hear your opinions and comments. I am hoping that this will be a learning experience for me as well as my readers.
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