Can you overpay (or even underpay) for a private island? Is such a thing even possible?
Let’s start with the facts. A private island in the Bahamas recently sold for $17 million. That’s not a bad price and a nice chunk of change for most people. The owner had thought he might get $28 million so maybe he’s a bit disappointed. And it was originally bought for $55 million.
So putting that all together we see $11 million less than the owner hoped for and $38 million less than the asking price. So I repeat my question, is it possible to overpay (or even underpay) for a private island?
This is as good a place as any to talk about what makes something worth anything. Can you put a price tag on a private island? Or a shack? How do you decide what’s a fair price and what’s too high?
It’s all in the eye of the beholder. If you find what you’re looking for in a home than no price is too high. If you can’t find happiness than any price is too high. It’s a tough world out there and you’ve gotta know when to hold ’em and when to fold ’em.
I apply this lesson all the time in my real estate investing. I’ve shown buyers the bright side of an otherwise losing situation. I’ve also shown buyers the downside of a winning situation. But there’s something for everyone and your job is to help your clients see that.
I’m happy to work in real estate investing in such an interesting time, when prices and profits can fluctuate without rhyme or reason. It adds just that little extra spice to life. Know what I’m talking about?