Why You Need Real Estate Timing
In other videos I’ve explained that you can do real estate timing and how you can do it, as well as how real estate timing makes you money in real estate. In this video I’m going to explain to you WHY you need real estate timing.
To do that I’m going to tell you a story about this house. It’s a pretty nice house, right? Brick colonial. It was built in 1997, with 4 bedrooms and 3 1/2 baths. A finished full basement and has well over 3,000 square feet, plus the 2 car attached garage.
It’s in a great neighborhood, with excellent local schools. Close to amenities, shopping, restaurants, entertainment. Everything you are looking for.
In 1997 when this home was built it sold as new construction for $176,000. I know, for some of you that’s really cheap. This house is in the Midwest, not on one of the coasts.
In 2006, 9 years later this home sold for $280,000. That’s $104,000 increase in value over 9 years, which isn’t bad for just one home. This would certainly be pretty nice if you were the one buying this home in 1997 and selling it in 2006 and making the $104,000 profit.
Here’s the kicker though. And this is why you really, really need to know about real estate timing.
In 2009 this home sold again for $154,000! That’s $22,000 less than what it sold for 9 years ago! I don’t know about you, but I sure as heck don’t want to be the one buying it for $280,000 and then selling it for $154,000. That’s like going to the bank with your paycheck and handing it over to them and saying, “Keep it. I’m not depositing it, just keep it.”
So my question to you is, what changed?
The location of the home didn’t change. It’s still in a great neighborhood, with excellent schools and tons of great amenities. It’s still the same home.
The only thing that changed was the timing. The real estate timing. Someone was in a position to make $104,000 in appreciation on this home and someone was in a position to lose $126,000. It all happened because of the real estate timing. I don’t know about you but I couldn’t afford to lose $126,000 on my real estate investments very often before it completely wiped me out.
And this is why real estate timing is so important. You need to know WHEN to BUY and WHEN to SELL. Because clearly if you get the timing right, you can make a whole lot of money. And just as clearly, if you get the timing wrong, you can lose a whole lot of money.
If you want to learn more about real estate timing and how you can do it, visit us as REMarketStats. Check out the video training to see more about how real estate timing works.