Through the years that I have been involved in real estate with my own investments and as a Realtor I have come across an old land saying "When everyone buys, sell. When everyone sells, buy." The quote is seems to be a derivation of a quote by J. Paul Getty. I sat down with my favorite real estate expert, Bob Keeran to get more information about the saying and what it mean to the owners of raw land.
First you need to understand that there is a natural cycle to real estate, let’s call it a wave. The water moves upward, crests at the top and goes down, only to naturally repeat. Values of land, like the economy, go up and down. As a real estate investor it is difficult to go against the swings of the crowd, to buy when everyone is selling their properties. An investor must step out of the moment to look at the bigger picture and know that the cycle will come again and plan to hold onto the property.
An investor should also consider selling when everyone is buying. Sometimes greed can take over and many get into the mindset that things will just keep going up and ‘If my property is worth this much now, in 3 years it will be worth so much more.’ While that may be true and the values continue to climb the majority of owners don’t see the downward cycle coming and they hold out, sometimes too long.
When I got into the real estate business, my father shared a saying he heard from a local resident who spend many years in the area. Old man Cecile said, "You never go broke making a profit!” There is so much wisdom in what Cecile said to my father. Greed tells you to wait because the values are going to keep going up and you might miss the very top, the most you can get for your land. In many circumstances that fear, the greed that you could get more for your land carries you up the wave looking only farther and farther upwards until you reach the crest. There is nowhere but down once you reach the top of the wave, you have let greed give you the false illusion it would continue and you held out too long. Going after the crest in the wave is a risk many don’t accomplish.
You never go broke making a profit. Buy property, and sell when you have reached a profit. A profit is a profit. If you have made money consider it a success and move to another and keep building on your success. Maybe there is another parcel priced just right and you know you could hold onto it, wait out the market and make another sale! Have a plan and strive to buy or sell against the crowd.
Land for Sale in Adelanto, CA - Kristen L. Maley (Realtor, Land Pricing Specialist at LandCore Realty). LandCore Realty provides cutting edge technology and marketing to it's clients. I specialize in helping land owners and those looking to invest in land in Adelanto, Victorville, Hesperia, Apple Valley, Helendale and surrounding areas.(760) 952-2345