My wife and I are not real estate agents. We are strictly investors. After identifying a unit in a resort community, we called an agent who sold it to him that afternoon. The price was a mere $42,000 for a two-bedroom townhome. Similar units were going for $65,000. He had found a bargain. Excited, he bought it and returned to Boston.
Two weeks later, the agent called to say that our friend had backed out. I called immediately to find out why. All he said was that he talked to his neighbor, and his neighbor told him it was a bad deal. He was paying too much.
I asked Richard if his neighbor was an investor. Richard said "no." When I asked why he listened to him, Richard got defensive and simply said he wanted to keep looking.
The real estate market in Phoenix turned, and by 1994, that little unit was renting for $1,000 a month-$2,500 in the peak winter months. The unit was worth $95,000 in 1995. All KD 5 Shoes Richard had to put down was $5,000 and he would have had a start at getting out of the rat race. Today, he still has done nothing. And the bargains in Phoenix are still here; you just have to look a lot harder.
Richard's backing out did not surprise me. It's called "buyer's remorse," and it affects all of us. It's those doubts that get us. The little 1 chicken won, and a chance at freedom was lost.