Luck plays a part

So, how much does luck play a part in real estate? Plenty. 

Outside of every day luck - finding the right house at the right moment, getting a great referral for a floor contractor, or standing next to a contractor in line at Lowes who offers to help you buy your paint samples - the most important place to study luck in real estate is in the market.

Mostly, luck comes into play because no one is able to fully predict future markets. When we buy a home, we don’t know exactly how certain areas will evolve, grow, or appreciate. 

Sure, during the financial crisis of 2008-2009, there were many, many owners who were in over their heads due to really unfortunate lending practices, bad advice, and FOMO (the fear of missing out).

However, there were far more owners who bought a few years prior or had been in their homes for quite some time, but had refinanced shortly before the crash. Their home values dropped way below what they owed on their mortgages. For many of those every day Americans, this was due to no fault of their own. It was bad luck. 

On the flip side, during this same time period, first-time home buyers who previously had nowhere near enough money for their first down payment, suddenly found home prices had dropped, so their savings went a lot further, and a down payment was finally in reach. 

At the same time, houses were sitting on the market for 6, 9, and 12 months. It was a buyer’s market. If that wasn’t enough, the US government began offering up to $8,000 in tax credits to those same first-time home buyers. Talk about good luck!

There is a big strategic play in the scenario I just described too. Investors see opportunities like this and buy up lots of properties during down markets. I talk more about the strategic pieces of real estate in my next post. 

My point here, though, is that if you think it’s all strategy, you’re wrong. It’s not. There is absolutely an element of luck. Learn what you can when luck is not on your side, and keep your eyes and ears open for opportunities where you can tell a little luck has come your way.

Do you have a great story where luck played a huge part in your real estate success? If so, share this post below on your social media profile and tell us your story!