Learning From Past Mistakes

There are never any guarantees in real estate; however, if you ask questions throughout the process, use the tools and checklists in this reference guide, and aim to understand what you’re signing, you significantly reduce your risk of failure.

Some of you have tried and failed to make profitable real estate purchases in the past. If you feel you failed, it’s most likely because you ended up with a financial loss. Don’t quit! If you are honest with yourself, you probably know you made some mistakes. Based on our experience, we can guess what went wrong:

•You may have decided to not use a real estate agent’s help with the transaction because you believed the seller would pass the savings on to you – in the form of a lower sales price – because the seller wouldn’t have to pay your real estate agent’s commission.
•You may have had the wrong plan, approach or attitude. Perhaps you approached the process thinking you knew more than the professionals. And the professionals let you make your own mistakes.•You purchased a new home without selling the one you lived in and now you’re stuck with two mortgage payments. You chose not to listen to or hire a professional, and tried to sell the old home on your own at the price you thought it merited. Selling it on your own, For Sale By Owner (FSBO)[1] might have turned out okay, but you started off with an incorrect price. The extra time it took to sell the home cost you a lot of money in additional house payments!
•You tried purchasing real estate with the help of a professional but, unfortunately, that person was more focused on the commission than on helping you. Or, that professional tossed around confusing words and complex explanations that were difficult to understand, and you were embarrassed or too frustrated to ask for clarification. This is an intimidation tactic and it’s occasionally done on purpose.
•The professional didn’t bother to educate you during the process. You were uncertain about the questions to ask or what to look for. Through no real fault of your own, you were in the dark during much of the process. In the end, you own your home, but you might also have financial, tax or legal issues, or problems with the house’s structure that were overlooked.

In Summary, owning real estate can be worthwhile when you’re doing it for reasons that are right for you. Making a S.M.A.R.T. purchase will provide you with the security of owning your own home, and the ability to build wealth too! The real estate purchasing process is one of life’s most exciting events. Be open to the opportunities by being prepared! Taken from the book entitled, Make No Mistakes About Buying Real Estate.


[1] FSBO, or “For Sale By Owner,” is when a seller chooses to sell a property on his or her own without the assistance of a real estate agent.

1 comment:

CoachingByPeter said...

Proficiency in using internet is a great advantage in hunting valuable properties but then when it comes to getting down the details, consultation with a skilled agent is needed. An agent must know the latest trends in the market and must be knowledgeable of the current economic indicators.