Three mistakes that buyers, sellers, and investors are making today.
Are you wondering where buyers, sellers, and investors are making mistakes in our market? Unfortunately, I have been seeing a lot of mistakes happening in our changing market, and I want to prevent you from committing the same errors. Here are the three real estate mistakes you should avoid:
1. Focusing on equity instead of cash flow. People have seen the market go up since 2012, so when they purchase a property, they think it will automatically increase in value. However, their problem is that they didn’t consider cash flow. Maybe they got themselves into a loan with a high interest rate, or they borrowed money they didn’t have. Think these things through carefully.
2. Looking at the short term instead of the long term. The idea that a lot of people don’t consider is that the market will always be going up and down. The average homeowner stays in their home for seven to 13 years, so they’re going to see an adjustment as the market ebbs and flows at least every seven to 10 years. Therefore, don’t worry too much about the adjustments in the market, but instead, remember the opportunities you have now that you own a property.
3. Sitting on the sidelines. It’s a mistake to think that things will always be like they are today. We need to be prudent, strategic, and safe, but don’t go too far. If you are educated in this industry, you will see that there are opportunities everywhere. I’ve purchased at the height of the market, when times were at their lowest point, and everywhere in between. It’s never a perfect time since the market will ebb and flow, as I said before. Therefore, make sure to look at the data, but don’t just sit in the stands and watch the field.
I don’t want this to sound like I’m encouraging people to just jump into the market—instead, I encourage you to be calculated and cautious. Consider questions like: Will the home provide equity and cash flow? What is your plan B? Do you have the information you need to make an informed decision?
Our job is to evaluate and then educate you. Therefore, utilize us as a resource! We would love to help you. If you have any questions, don’t hesitate to call or email me. I look forward to assisting you.