Common Buyer Errors

It has been said that those who don't learn from history are doomed to repeat it. With the real estate market in a down cycle, it's a good time to mull over some of the more common "no-no's." Here are my picks for mistakes to avoid -

TRYING TO PICK THE TURNS

Many sellers and buyers play this game, trying to time their sale, or purchase, to get the top of the market and gain optimal profits, or to swoop in and pluck up cheap property after a burst. This is a year when the seller's market has turned into a buyer's market and prices have eased. But the slowdown is unevenly spread across the country. But nowhere has there been a dramatic "pop" and you probably shouldn't expect one. Historically, for the most part, real estate bubbles don't pop, they just slowly deflate and the market levels off then surges again.

Always take the approach that real estate is a long-term investment.

NOT UNDERSTANDING THE LENGTH OF
THE BUYING/SELLING PROCESS

You know what happens when you make decisions based on optimism, time-on-the-market averages and generous promises from agents -- ye old Murphy's law kicks in. The home-selling process is often more drawn out than you think, from the early planning, to arranging finance, to difficult negotiations, to final inspections, to oft-delayed closings. Give yourself extra time to complete the deal.

EXPOSING YOUR HAND

Try to contain your enthusiasm for the house you are considering buying, otherwise, it will cost you money. You can scream "yes!" when you get back out in your car.

ASSUMING THE APPRAISAL EQUALS ACTUAL VALUE

In theory, appraisals are objective opinions of value. But emotion and self interest can play a part so ask your agent for a range of figures, an optimistic one and a pessimistic one. Work on the pessimistic.

Article Source: http://EzineArticles.com/?expert=Neil_Handley

About the writer -----------------------------------------------------------------------------
Neil Handley graduated as a Bachelor of Economics and Accountant. After some 20 years as a stock broker Neil turned to property development. He then acquired a controlling interest in a property development company listed on the stock exchange and became CEO. He has been involved in developing residential subdivisions, industrial subdivisions,shopping centres, office buildings and medium density residential dwellings in Sydney's north shore, Northern Districts, Parramatta and Liverpool areas and on the Gold Coast, Queensland. One office building was sold to the AMP for $25ml. Neil's company advises on building wealth via property.
Go to http://www.specialstrategies.com .

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