Investment Real Estate Buyer's Blues Destin, Florida
Investment Real Estate Buyer's Blues seems to be spreading like the H1N1 Swine Flu virus. Many Realtors may be familiar with this story.
My client swooped into town one day in late 2006 on a Sunday. We were closed that day, but being fresh to the business, I happened to be there when he called. He was on a mission to purchase a condo. He is a seasoned builder/investor from out of state. I practice real estate in Destin, Fl--a luxury, vacation-rental community located on the Gulf of Mexico.
My client had the pre-construction prices for the properties he was interested in buying. He had been watching the market diligently, and he was very sure that he had timed his purchase precisely to the second where the market had hit the "bottom". He liked the feeling of being in control and did not feel the need to consult with a Realtor about market trends or CMA's.
I was able to negotiate the best deal for the property he wanted up to that date---about $100K less than pre-construction. He was very happy.
After he made his purchase, my client continued to watch the market. This time he had enlisted my real estate expertise. Six months after he had made his purchase my client was no longer very happy-- he had contracted a severe case of the Investment Real Estate Buyer's Blues.
He began by blaming the other owners whom he felt were devaluing his investment by short-selling for almost half of what they paid. Then, he started blaming the local Realtors whom he felt had taken advantage of the run up in the market and had tricked everyone into buying over valued properties. He blamed the media, the local developers, the lenders, the folks who had no money to begin with and still bought real estate leading to their Investment Real Estate Buyer's Blues.--he even blamed the American people for electing a Democrat to the Presidency. He blamed everyone EXCEPT himself! Today, in late
2009, my client is really singing the Investment Real Estate Buyer's Blues. . 
If my client were to sell today he would have to sell for $200K less than he paid. I have explained to him that there are folks who have lost millions and that things could have been much worse for him.
He and his wife plan to move to Destin, Fl, and they are looking for a permanent residence. Because of this single slightly off timed purchase, my client has become vindictive in his search for additional property. His modus operandi is to offer 50% of a price that has already been reduced by 2/3's. Ninety-five percent of the properties I have shown him have proceeded to sell. He is still searching for the perfect permanent residence for a give away price.
I have dealt with many other "investors" who chime the same mantra.
The prudent investor would be wise to make the best deal they can and buy it now rather than watching the best properties being sold and being left with nothing else than to sing the Investment Real Estate Buyer's Blues.
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