Investment Property Or Money Pit? Make The Right Choices

Planning to purchase your first investment property? Caution and patience can keep you from making big mistakes. Listen to the advice of your agent and consider all the possible factors that go into making a good investment decision to prevent you from experiencing the many potential pitfalls that can turn your investment into more of a money pit. 

Here is some advice to help you avoid some of the most common mistakes that first-time real estate investors make.

1. Don't overpay for the property thinking that you will make up for it on a sale down the road. Savvy investors know that you make money in real estate on the buy, and not on the sell. You should be patient and wait for a property you can buy for the right price and terms today.

Overpricing . . . NEVER a Good Selling Strategy!

The single most important factor to consider when selling a house is the price.  How much is your house worth in today's local real estate market? 

If you are thinking that you should overprice your home and then aggressively negotiate, think again.  Overpricing may be the biggest mistake you can make when selling your home.  Overpricing leads to a longer listing time and lower selling price.

By overpricing you will miss the buyers that are truly in your price range. Those buyers may not even be aware that your home is available and that you will sell within their means.  And, your home will not be attractive to the buyers in the higher price range. They are looking at homes that are nicer than yours . . . higher priced homes with more space, more amenities, and possibly a better neighborhood.  So by overpricing, you put your home in a non-competitive position . . . too much money for the 'right' buyers to consider, and not measuring up to the buyers in the higher price range.  

So what happens then?  

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