I recently went to a presentation on fractional ownership. What is fractional ownership? It’s like a time share, but you actually own a piece of a property and get a deed, not just the use of a property which is time share.
The presenter was trying to get people interested in a new resort and at the beginning of his speech, he stated the following, “The world is on sale and if you are not negotiating homes, cars, hotels, air travel, and just about any other goods and services, you are missing the boat.”
I thought about that statement long and hard. “The world is on sale.” I think for the most part, he is correct that the world has been on sale for the last 18 months. I think real estate buyers have taken the greatest advantage of it. I myself have negotiated hard for cars, trips, and products over the last year and most merchants were willing to bargain. Every once in a while, I would run up against a merchant, chain, business, or individual that seemed to be oblivious to the fact that we were in a recession and they were unwilling to negotiate.
The question now is, “How long will the world continue to be on sale?” My answer is I don’t think much longer. Maybe 12 to 18 months, but that may even be too long if we continue to have sustained recovery. If jobs come around sooner than expected, then the sale will be coming to an end soon. As car companies get healthy, there will be less and less incentives and fewer negotiations. In real estate, we are already seeing a healthy sellers’ market in the 300K and below price range. Eventually, that demand for homes will reach the mid-level market and we’ll see an end of the huge discount sales there as well.
The point of the story is this: Yes, the world has been on sale for 12 -18 months, but it looks as though it’s coming to end. If you have not taken advantage of the red tag sales in real estate, your time may be running out.