Sell Houses Article

Mistakes To Avoid
When You
Buy And Sell Houses

By Noel Peebles

Would you buy a house on sale at the supermarket?

Now, that sounds like the silliest question you've heard all week…maybe all year?
Supermarkets don't sell houses. Well, yes you're right - supermarkets
don't sell houses. But, if they did… and if they had houses for sale…would
you buy one?

I know that sounds silly, but what I'm getting at is really important… especially if
you are in the market to buy or sell a house. You see I want you to think about
the way most of us go about buying and selling property.

Like it or not; how we buy and sell houses says a lot about human nature. We all
like to be seen as individuals, but in a lot of ways, we are like sheep. Most of
us would hate to admit that we have a herd (flock) mentality. However, when
it comes to buying and selling property, most of us will do what everyone
(well nearly everyone) else does.

Anyway, back to the supermarket. What would most of us do if the local
supermarket had a big discount sale and dramatically reduced all its grocery prices?
What would us sheep do? That's easy to answer. We would rush in and grab
some bargains! We'd buy up large - wouldn't we? Of course we would!

The funny thing is that when property prices, or share market prices fall - what do
most people do? The exact opposite . . . we do nothing! We wait until the
prices start moving up again!

When there are a lot of real estate signs hanging on front fences - houses take a lot
longer to sell. When the news media tells us that the real estate market is dead
- real estate agents go quiet.

So when the real estate market is depressed, instead of buying . . . most of us do
nothing. This is usually a good time to buy a house. It is a buyer's market!

A depressed property market provides the opportunity to "buy low - sell high." Yet,
because of fear, most of us choose to "buy high - sell low" or "buy high - sell
high." We do the opposite to what we would do in the supermarket.

So, here are the questions: Should you sell your house when the real estate market
is depressed or booming? Should you buy a house when the market is flat or
rising? Well, I guess it depends on your own circumstances. You have to
decide what's best for you. You now know what most people will do -
so it's over to you whether you join the herd or not.

I will say this; for a first homebuyer, or an investor - usually the best time to
buy real estate is when the market is depressed. Do some research,
overcome any fears and "buy low - sell high."

© Noel Peebles Market Leaders Limited.

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