Written by Rich Reed

his is the third month I have contributed to the Bluffton Breeze. Based on the number of comments and follow-up questions I have received, I am amazed at the shear number of people in both Bluffton and on Hilton Head who read this publication (advertisers take note!). And while I strive to be both realistic and positive in the face of so much uncertainty, I have had many ask the very reasonable question, “Why buy now, especially given the constant negative news?” My response is always the same, “How can you let this incredible opportunity pass you by if you have a choice?” I completely understand if you are reading this with a measured sense of trust in my motives given that I make my living in the real estate industry. But I am resolute in my conviction in two guiding principles when it comes to real estate. Each depends on whether you are in the market for personal reasons or strictly financial ones.

First, let’s talk about the more important personal aspect of real estate. Always remember that your life is happening regardless of what the market is doing. You can try to time your retirement, the birth of a child, a career change, or any other major life decision on the real estate market. BUT what you might gain financially if you are one of the few who time it perfectly can cost you dearly in more important areas of your life. Let me give you a concrete example.

Steve and Susann have been coming to the Lowcountry from PA for years. He is a cardiologist and she an educator. Knowing that they wanted to eventually make this their home after retirement, they bought a homesite in 2004 when the market was stronger and started designing a home. Construction of that home began a year ago and was complete last month. They too have seen all the recent headlines and at first lamented the fact that their timing was “off”. They could have acquired the homesite less expensively today and probably negotiated the building costs down too. But upon further reflection, they realized that if their plans had been based solely on market condition, their move would have been delayed at least three years, and one cannot put a value on the time they now spend here. Given his profession, they know the importance of enjoying every day together (irrespective of the market). And while their friends back home were busy with the latest snowstorm, the two of them took a golf lesson last week. No, their timing relative to the market does not seem to be bothering them too much. They have come to realize that the most precious asset they have is time, and they are thankful they are not squandering it “waiting” on the market.

The second guiding principle – which is meant for those who are strictly investment oriented, OR those riding the fence on whether or not to buy today – is cliché: DON’T FOLLOW THE HERD! Sell when everyone is buying, buy when everyone is selling. With inventory levels so high, now is a great time to buy! At the risk of upsetting the balance of overwhelmingly negative headlines, please allow me to provide a few headlines and quotes that I believe should be given more credence:

“Housing: Best time to buy in four years” - CNNMoney.com (March 4, 2008)

“The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher.”
- A chief economist quoted in Time (Feb 25, 2008) making the case against waiting to buy.

“I may miss the bottom by 10% or so, but five years from now, that will be irrelevant.”
-A real estate investor quoted in the Wall Street Journal (Feb 28, 2008)

Thus, if you have goals of owning real estate for long term financial gain, now is the perfect time to buy. But above all else...live your life regardless of what the market is doing.

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