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mentality. Was the market as bad as the media and national reviews depicted? You will always find support on both sides of an argument, and if you wait long enough, and say something long enough, sooner or later you will be right either way.

But this should never be the reason for failure. Let’s review why some were successful. In the Orange County market, about five new subdivisions of 50 units or more were released for sale to the public; each was priced from $450,000 to $950,000. Each one of these subdivisions sold out of standing inventory within three days, with back-up buyers waiting to acquire a cancellation or opportunity.

Why would new homes in a declining market be so popular, and if things were that bad, how could they sell 250 homes in three days? Pretend you are looking for a home. You search resale homes and find nothing of interest, always listening to your fear because nothing tangible creates confidence in your decision.

You’re torn between something established but concerned that the neighbor in an area of interest may be having financial complications that could impact your value even though your purchase has nothing to do with their financial issues. Thus, you feel trapped by an imaginary issue.

Plus, a new homes project provides security that all the buyers have qualified. Also, the prices in the new division will establish a benchmark that has a low risk of declining due to the neighborhood’s qualifying aspects for mortgage never discounting that neighbors paid

cash. The risk has just been lowered — if not eliminated — in this purchase. This does not mean buyers should forgo resale communities but it does take a comparable to determine if there is truly a lack of buyer interest or just a lack of confidence in some areas of this market, but more importantly what people are doing to overcome these unknowns.

Realtors work very hard to connect clients to the right property, which in the affluent coastal areas of California is more difficult due to the mix of neighborhoods and locations. Therefore the opportunities for purchase have to be scrutinized and with decisions being made for the long term, each consumer will want the same guarantees, as noted above. Trust your representative. Local real estate agents have the knowledge to make informed decisions. Rely on a professional and reduce the risk.

On another note, why has smart money continued to research and buy high-end residential properties in 2010? Because it knows that the prices can never be judged at the bottom, and that the prices negotiated are those that may never be available again. Therefore smart money is actively looking for and taking opportunities.

For instance, there was a home in Newport Beach that was listed for mega-millions in 2006, and a year later was removed from the market after interest was under the seller’s expectations, and then relisted in 2010. That property sold for almost 50% of its original asking price. Smart money won! There are numerous examples of smart money winning in this market and not just on mega-million dollar sales.

Here is my crystal ball prediction: 2011 is looking good, and optimism is high that this year will show signs of economic growth. Great buys exist, and 2011 remains a great time to exercise this opportunity.

TOM IOVENITTI is the former president and chief operating officer of Coldwell Banker. He lives in Newport Beach.