These 3 words are sometimes heard when discussing missed real estate opportunities. A property will sell for a significant price and someone will think back and say, “I remember when I coulda purchased it for next to nothing. I woulda, but … (fill in your excuse). Now looking back, I shoulda bought it.”
If you think about it, the coulda, woulda, shoulda has traditionally been associated with a failure to purchase in the past. But, what about a failure to sell?
Recently, I was driving through the country on my way home from viewing a rural property. I drove a past a farm I recognized from about 10 years ago. I remember meeting with the people and discussing an auction. We would divide the farm and sell it in several parcels. As I remember, it was only 5, since there was limited road frontage. One parcel would include the older 2-story home.
I looked up the property when I returned to the office, and it is still owned by the same people.
It is located about 6 miles from Nowhere, and Nowhere is another 6 miles from Somewhere. At the time, the owners envisioned a vast subdivision. I disagreed, as there was no sewer, no water, and no gas. But, the owners knew someone who had sold a property for big bucks per acre. I attempted to explain that property was very ideally situated in Somewhere. All utilities were available, shopping, schools, and more were in the vicinity.
They were thinking they had won the lottery; I was thinking their property was worth in the $500,000.00 range. Still a lot of money, but we were pretty far apart on price.
Today, the sale price of this property would be around $300,000.00.
I did a quick calculation with conservative numbers. Investing the $500,000.00, earning 5% annual interest, paying income taxes of 20% on the earnings, and including another $50,000.00 they have paid for property taxes, utilities, and general maintenance, they could have pocketed today around $800,000.00.
I have chosen a simple one, but there are many more ways to look at this transaction. And the potential for greater earnings has been available during the past 10 years.
The point is: should you be selling or buying in this market? Maybe, a little of both! In 10 years, we will know when you may be saying Coulda, Woulda, Shoulda.
For a confidential consultation concerning any property you own, contact me today. I will not make the decision for you, but will help you with the details.
Terry Howe has been marketing and selling assets for more than 30 years. Both real estate and personal property have been sold. Our clients consist of individuals, investors, business owners, attorneys, local, state, and federal government agencies, estate administrators, bankruptcy and other courts, etc.
If you have a problem we usually have a win/win solution.