Maine Real Estate: It's about Quality of Life Value

A Member Perspective:

In the crazy days of the real estate bubble it became all about the retail value of real estate: quick turn arounds - grab it while you can - it's got no place to go but up - and less about the individuals. No doubt, real estate has a retail value but it is not the best value, I believe.

The real value of real estate is the Quality of Life value.

Where do you want to live; where do you want your children to grow up; are you happy when you drive up to the house after a long day's work? Those values should be the ones we should never forget, and yet it happens every time there is a Seller's Market. Buyers get in a frenzy and purchase just about anything and they expect prices to go up.

People forget that we had another bubble that burst in the early 90's. By mid 90's many believed owners lost about 20% of their value if they purchased in the late 80's - only if they sold. By the late 90's they were either breaking even or actually making money on their home investment. All the while, they were enjoying the quality of life generated by their homes - retail value aside.

I doubt that concentrating on Quality of Life issues would have stopped the latest bubble. However, it would have set the right expectations that the year to year change in retail value is less important than living in and enjoying their homes.

So, let's learn for the last time - single family housing should be about Quality of Life and not necessarily the retail value at any given time.

Submitted by Earl Black (Better Homes and Gardens Real Estate Town & Country, Bangor. Earl is also a past president of the Maine Association of REALTORS.