10 Biggest Mistakes Everyone Makes When Buying/ Selling Real Estate
Mar 6th, 2007 by Kirby
So there seems to be more than enough people talking about real estate. I personally believe that real estate will always be a good investment if done smart. Make smart moves you make money. Learn the curve because in most cases history repeats itself and people get greedy. Sit back and wait for their greed to over come them with the need to buy buy buy real estate. Wait until the market shifts into a renters market instead of a buyers market and buy when the prices are right. Some bad areas can prove to be gems and not all wealthy areas are good investments.
1. Not finding the right real estate agent.
– I have experience here, i went through 4 agents in GA when i was looking for rental property and all of them seemed to be great at first but then turned out to be suspect and pretty shady. So be cautious when working with agents that are quick to make a sell.
2. Not knowing what the buyer or seller wants.
– Always go for the win-win. If investing, it is important to adopt the mind set of a ‘problem solver,’ not a money hungry investor.
3. Not pricing a property properly
– Never take the sellers word for gold and never just buy what the agent is selling you… literally… Always do your due dilligence.
4. Not knowing how to structure a more profitable transaction.
– Know your business, know the area, know the worth… However, keep in mind that a property is only worth what someone is willing to pay for it
5. Not knowing how to sell a property quickly & easily.
– Always network with great people! GREAT PEOPLE! Never be afraid to cold call.
6. Not knowing what clauses to use or avoid in a real estate contract.
– Always read the contract and then some! Never be afraid to submit amendments or ask questions. In fact always ask questions. GET A LAWYER!
7. Not knowing how to save substantially on taxes when selling a property.
– Get an accountant that specializes in real estate. Don’t settle… they will be worth their weight in gold.
8. Not offering seller-financing when selling.
–Learn different methods and learn them good. However, I advise that you specialize in one area before trying to perfect another.
9. Not offering seller-financing when purchasing.
– Give your buyers options! Especially if you are quick to sell! Again, get a lawyer that specializes in real estate!
10. Not understanding how to safely earn 20% or more with trust deeds and mortgages.
– This is more important when dealing with notes but i don’t see how this can be a problem…
Hope this helps some of you… enjoy…
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How are you involved in RE? Just curious.
I started investing back in 2001 buying and selling homes for home owners that didn’t want to deal with agents (flipping properties). Then i went into wholesaling properties and working with agents and contractors (buying/ rehabbing/ selling foreclosures, REO, FSBOs, ect.). The properties they didn’t want to put time into moving i did the work, but i don’t trust agents nowadays.
My company doesn’t deal with conventional SFH (Single Family Homes) anymore but focuses more on commercial property/ Multi-family Units (triplexes and up).
I have no clue why these < ?> symbols keep popping up… any clue? Sorry you got the long answer…