When it Comes to Bidding on Investment Property, Elsa Offers Sage Advice

If you have small kids, then you know all about Let It Go!   Yeah, come at me Walt!  Come at me!

Anyway, the phrase should be used much more often than it is in the high speed, lunacy filled world of property auctions.  If you're ready for some Arkie wisdom, read on.

If you're still bidding hotly during the last minutes of the auction, particularly if you're above your predetermined maximum, then you need to let it go!

Get a clue!  There's a reason why auctions get extended voluntarily and it's to take advantage of the undisciplined, win-at-all-costs crowd.  I've seen a lot a $ lost this way, and almost anyone is susceptible (the truck I'm driving now reminds me of this every day).  Beware and don't let the excitement and your emotions override fact based decision making.

If you have some misgivings about the property, AND you find yourself rationaizing with assertions like "well I'd live there," then you need to let it go!

We all have some experience or we wouldn't be investing.  To completely discount your "gut feelings" is typically fraught with peril.  Taking an investment risk should not involve arrogant foolishness and it certainly isn't always rewarded! 

If you suspect there's a significant defect with the property that a GENERAL contractor likely can't handle, then you need to let it go! 

If your home inspector or contractor has body language that is telling you they are concerned or worried about one or more aspects of the property, that's their experience telling them to avoid trouble.  To honor that is to prevent going down a path that you will collectively regret.

If you are certain you've singlehandedly identified the one valuable thing about the property that everyone else overlooked, then you need to let it go!

Undervalued property is a cruel myth.  If it's available for purchase, then someone assigns a value to it for one or more reasons.  Overpriced properties abound for any number of reasons as well, but I have yet to find a parcel that was truly being "given away" in a financial transaction.  Things like "we could build another house on this oversize lot and double our money!' make great television flip or flop show antics, but that's because it's H o l l y w o o d.  In the real world, 15 or more people already thought of or tried to do it already and failed for whatever reason and you're just the latest one with the epiphany there o' chosen one...

If you're bidding primarily based on one key valuation factor or you're bidding sight unseen, then you need to let it go!

The old adage "a fool and their money are soon parted" is apropos.  Purchasing based on one overriding criteria is a myopic delimma called evidence bias and it has led to some of history's greatest calamities.  Buying sight unseen is for the super rich and not to be done lightly by mere mortals.  Stay in real world and make an honest, well researched, ROI.  The excitement should come from success and accomplishment, not from going white knuckled through the purchasing and reselling process.

 Happy Hunting!


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