A couple of months ago, while I was relaxing one night in front of the television (this is ever-so-rare for me these days), my 40" LCD HDTV went out and I was left with nothing but audio. At first I thought it must have been a camera failing on the show, so I changed the channel - and freaked. Nothing. Just sound.
I had a guy come look at it, and he took it back to his repair shop. He called me later that day and said that it would require ordering a part and that it would take about three weeks to get it fixed. Fair enough, although I did begin to suffer high def withdrawal pretty quickly.
We replaced this TV in our media room with a smaller, older television (that we already had) for a few weeks, then I got another call.
The good TV was not fixable.
I decided not to rush out right away and buy a new one, although I did want to have one by the time the NFL season started. I ended up caving during a Memorial Day sale and getting a new one - it was such a good deal!
I knew that if I waited long enough, I could find the deal I really wanted at MY price.
Sound familiar?
I paid $3000 for my television about three years ago. It was pretty cutting-edge back then, and times were good. Why not?
This week, I paid $1199 for a better version and arguably a better brand as well. When I was considering waiting for that "deal", it struck me that this is how most current potential real estate buyers think:
"If I wait long enough, prices will continue to drop and I can get the house of my dreams for pennies on the dollar."
The media feeds this story daily.
However, unlike electronics, homes do not depreciate in value over the long haul. In fact, real estate is probably the most stable long-term investment that you can possibly find.
Waiting on the sidelines may work well when buying the latest technology, but it may backfire with regard to home prices, which are "hyper-local". This means that although the national averages may be down, many areas are experiencing a very healthy market RIGHT NOW.
Don't play the waiting game if you want/need to buy a house. Although deals exist, they may not be the norm in your area.
I have been selling homes in the Austin, Texas area for over 11 years full-time. If you are looking to buy or sell a home in central Texas, call me first. You will not be disappointed.
Jason Crouch, Broker/Owner - Austin Texas Homes, LLC 512-796-7653 (cell)
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I have been working as a full-time Austin area Realtor since January 1997. My years of experience serve me well as the broker and co-owner of Austin Texas Homes, LLC, which began operations in 2004.
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You are so right, my friend. Prices are actually climbing slowly in our area.
Very nicely put Jason! How are you these days?!
Susan
Jason: What a great story, and a great analogy. Thanks for sharing it with us. Take care...
Jason- You never know when you hit the bottom of the market until you see it in your rear view mirror!
So true and well said, I'm sorry about your expensive TV dying though.
Want another monster tv?? My husband brought home a SECOND one, some sort of work trade thing. It is funny to think we paid $3,000 for the first one, but this second one (which I am going to CraigsList) is worth about $800.
What a cool analogy - something I'll bet a lot of umm 'men' :-) could relate to! I still have a 19 inch box tv....yikes
Good post. All the best with the new TV.... any you enjoy it all summer and also into football season.
Makes me remember buying that first desktop... and using AOL for email. Yikes.
On one hand it's never fun having a major appliance go kaput, but I seem to like buying new toys, so this would have been the perfect bigger/better opportunity. haha.
As for buyer mentality... you're spot on. Buyers are hoping the bottom will truly fall out of the market (all segments) and they can buy at 2000 prices. That's pretty much a pipe dream though.
I laughed when I read about the television price 3 years ago as opposed to today. My father in law always buys the latest technology when it first comes out then moans and groans about the newer better models. I think that a certain type of buyer will always be looking for a better deal. It is our job to let them see the long term benefits no matter what the market is doing right now. Great post.
JASON - Great analogy and totally logical. Hopefully some people that are waiting on the sidelines will think twice after reading this.
Thank you Jason for the post and the point that now is the time to buy a home. I wonder why the media can't see it?
Don R.
I agree with you. You make an excellent point. Real estate is the best investment for long term rewards in my opinion.
Sorry to hear about the expensive T.V. I know how much that hurts!!!
Computers come to mind...they're almost obsolete by the time you get everything uploaded and working! You are right...real estate is completely different in that it usually appreciates over the long term, and won't just end up in a landfill a few years from now.
Jason, Great analogy! So true and I think it will be interesting to see the publics reaction as interest rates begin to rise this summer.
Jason - That is a great great analogy (I agree with Marc)... The media feeds the idea that you can buy a home for pennies on the dollar and it just isn't true.
It's human nature to want the best deal possible. Don't you just hate it when you see a product you just purchased, advertised for less not too long after! However, you make a good point ... the housing market is a different animal. Savvy buyers are aware of this. Maybe, reality will catch on!
Yikes! A $3k tv only lasted 3 years? Good analogy, though, thanks!
Jason: It's so true. And here in Northern VA, prices seem to be rebounding ever so slightly. Before long, maybe we'll have a trend in the other direction. I was running comps for a gentlemen who wants to make an offer on a townhouse and was surprised that over the last two months the trend is UP. Besides, with your analogy of the TV, if you bought one to replace the broken one right away, it would have been worth it in the enjoyment you started having immediately. The price difference may have been $500-$1000 bucks, but ask an avid sportsfan, or reality TV addict what months of HD TV is worth and it's hard to put a price tag on it.
I've been thinking the same thing. The 'deal' mentality is hampering the market as much or more than the media. Katerina made an excellent point. Love that quote!
Jason- Thanks for buying me a TV too! I will be looking for it in the mail...
Sometimes buyers have to learn the hard way. They wait, and the home is snatched up by someone else. It usually doesn't take more than once for them to wisen up... :)
Jason,
You are so right on. I am a San Francisco Peninsula / Silicon Valley Reator and I keep seeing this mentality on a regular basis.
First of all, people need to go to the NAR website and get the facts, not what the newscasters say.Look at the graphs of the home buying market and you will see we are just having a price adjustment, not a sale of forclosure, shirt sales etc.
Where are all the intelligent investors, and why are they not jumping as the mortgage rates start back up?
Every need a trust worthy and confident realtor, I will help you clients with every detail,as detail is my middle name!
Libby McPherson-Mann
www.LibbyMcPhersonMann.com
The title got me thinking this was a post about offering incentives to sell a home, but the analogy you made was spot on and it was a fun read.
Jason, Great analogy! What a rip, your TV going out already??? Got lemons, make lemonade...at least you have an updated version now! :)
Jason: Good luck with your new tv. I also got a new tv during a holiday sale. It was Thanksgiving and I could not pass it up. I do agree with your analogy too. As Brian Buffini says, "Those that are looking for the bottom will find out when it is six months after it already happened. "
That's pretty good. Of course there are different consumer behaviors...had that happened in my house there would've been a three hour tantrum after hearing the news about it taking so long to fix and then there would've been another tv in its place faster than geanie could've shook her pony tail or Samantha could've wiggled her nose....the line between needs and wants in my house are a little gray at times. Oh here comes Jerry, gotta run! :D
Jason- Excellent analogy. That's too bad about your TV. I've held off buying one but our set is just about ready to retire as it was most likely made when Bush Sr. was president =)
Best,
Scott
Hi Jason, Ouch! 3 yrs and 3000 $$$$$ that hurts. Don't those monsters come with a warranty? Anyway, good analogy.... Bottom fishing is not for the faint of heart.
Fox Business Channel Talking heads are sayong buy now of you can!
Ginger