If you’re into the real estate investment game, then you’ll know that there’s a steep learning curve. You have to take on so much information to even get started. No wonder, then, that some investors in the business drive real estate agents crazy. They don’t know the lay of the land.
In this post, we take a look at some common property investor mistakes you’ll want to avoid. Steer clear of these, and you’ll find it much easier to squeeze returns out of your investments.
Real estate agents want you to know that refusing their advice is a big mistake (well, they would say that, wouldn’t they?)
The problem is, agents have seen thousands of property sales before. And they know precisely how things play out. Mistakes early on usually lead to tragedy and error later. And they don’t want to have to say, “I told you so!”
Promising False Upgrades
Property investors like to promise buyers the world. It’s the old bait-and-switch maneuver. They promise buyers an offer they can’t refuse, only to serve up something they don’t want when it comes to the final transaction.
This type of sales tactic works in other industries. But it is pointless and futile in the property sector. People find out, and they will hold it against you.
According to Insulatekansascity.com, the best solution to this problem is to provide real upgrades. Don’t just promise to improve the property – actually do it!
You can upgrade all kinds of things including:
- Heating system
- Exterior finish
There are plenty of others you could insert here, but you get the picture.
Shooting the Messenger
Real estate agents aren’t there to hurt property sellers. They’re just obliged to give them a dose of reality when they require it.
However, when they do, it can up property owners. They don’t like hearing that their assets are worth less than they thought. And they certainly don’t appreciate being told that they’re going to have to lower their prices. It feels like a personal insult.
Real estate agents also do not like it when sellers get greedy. Here’s how things usually play out. The agent takes a bunch of professional photos of a home. They then upload them to their website and alert everyone on their mailing list. Then, they simply wait for the interest to roll in.
Usually, interest comes in pretty quick – often within minutes. That’s because the keenest buyers are often those who hop into the market first. They spot a house they like at a price they can afford and decide to go for it.
The problem is that sellers get greedy. They see initial interest as a sign that there’s more to come and that they should wait. That, however, rarely happens, according to https://www.which.co.uk/news/. The first offer is usually the best because that’s the person who wants the property the most. Everyone else is only willing to pay less. It’s just how markets work.