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Property Crossroads - Real Estate Info

Set your Emotions Straight! - The First Step to Real Estate Success

by Maricel Ferrer-Custodio on February 16th, 2007

A lot of books were written about achieving real estate wealth, so many courses are available to educate your way to real estate success, but these are all futile if you don’t fix yourself first!

With so many resources available, you can get confused on which direction to take your real estate investments. The world of real estate is like a jungle, where only the fit will survive.  You may get lucky with a deal once, but if you want to stay long in the business, you need to build a strong foundation.   Otherwise, you might interpret the things that you’ve read the wrong way or worst, you can easily get persuaded to make the wrong moves.

A real estate transaction is often a very emotional experience for a lot of people, specially for first-time buyers.  If you don’t manage your emotions well, you can end up with a serious mistake.  Moreover, I’ve seen so many people been blinded by their emotions, trying to justify that they have made the right decision… even if all factors are against it. 

One indication that you are in this boat is when you start defending the property you recently bought, during an ordinary conversation, when no one is asking you why.  Another is, when you start telling other people that your location is much better, but you don’t really sound very convincing (such as not having any factual information to support your claims).  It’s like your fishing for people to give you the assurance that you need.

It is when you’re in denial, that you dig a deeper hole for yourself.  It is in facing reality and learning from your mistakes that you can take yourself to the next level.  Otherwise, you have put your efforts and negative experiences in vain. 

It is best to manage your emotions and set it aside when making a real estate decision.  Prioritize what is logical, if it meets your set of guidelines, then your emotions can follow.  You will naturally feel good about your decisions, without the need for others to validate it.

The outlook is not very good for most people, at the prevailing real estate climate, in most countries.  In my previous article, I discussed about negative equity and foreclosures as the two most common scenarios you don’t want to encounter in real estate.  It is a painful hit to anyone’s emotions to be in this situation.  However, if your emotional foundation is strong, then you can easily recover and move on.

Some of the most common mistakes I’ve witnessed people made in their real estate purchases were:

  • Buying for the sake of having a property, even if it’s not the best one to buy.
  • Joining the bandwagon, even if it is going the wrong way.
  • Buying because it is cheap, without even realizing there might be an underlying reason why it is selling at that price.
  • Settling for second best, simply because it is the only thing they can afford.  Your budget is important in your real estate purchase, but don’t let it take control of what you can buy.  If you need to look in another location, to find a better property, then do so! It is better than getting stuck with a dump.
  • Over improvement of a property on the wrong location.  It is good to improve one’s property, but not when you cannot recover your cost.

All these can be avoided in the first place, if you have set your emotions straight from the start!  To add, you can better assimilate all the available real estate resources at hand, if you have a clear mind; open to accept things, even if it goes against your emotions. 

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POSTED IN: Buying a Property, Educational Tools, Road to Profits

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