Are you looking to invest in the real estate market? Steer clear of these classic pitfalls.

1. Don’t rely on a realtor to find out a property’s real worth. Always remember that a realtor, in most cases, works for the seller. Go online to the tax assessor office, do online research on sold information, etc. and do your homework.

2. Don’t think the seller is in a stronger position than you. It is a buyer’s market and, especially now, sellers are more desperate to sell a house than you are to buy it.

3. Don’t become emotional over the deal. Keep your heart out of the process. Use your mind, or you may end up overpaying for the property.

4. Don’t quibble over minor points. Strong negotiators don’t have to negotiate every detail. If you found the right property for your needs, make the deal and do it. Don’t nickel and dime the seller over the tiniest points like curtains or cleaning.

5. Don’t look for “house beautiful.” If you can, look at the property for its structure, not its cosmetic fixes. Ignore paint color, furniture and fixtures. Look deep!

6. Do NOT put an offer in on a property unless you have all of the facts first! Impulsive investors loose.

7. Don’t “pretend” interest if it is not there. Either you are interested in making an offer or not. This is not negotiable. It is your reputation so take care of it!

8. Don’t start looking until you have the money in place. Enough said here.

9. No one is your friend in a real estate transaction. This includes the realtor, the banker, the seller, the appraiser, and anyone else involved with the deal. I could tell stories on this step for hours!

This entry was posted on Friday, March 28th, 2008 at 8:00 am and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.