Ways To Lose Money In Real Estate #1 (Buy High & Sell Low)
Don’t buy high and sell low. Selling your home for less than you paid is a sure-fire way to lose money in real estate. This is just common sense, right?
See other videos in the series here.
Hey, I’m Zach McDonald, your real estate agent with Real Property Associates. I want to do a series here on how to lose money or ways to lose money in real estate. You’ll find on YouTube and any blog tips for making money in real estate, ways to invest in real estate, and to make sure that you are investing wisely. What I want to do in this series is kind of do the opposite, but at the same time also teaching you some practical ways to make money in real estate. I want to teach you ways to lose money so that you can avoid those and stick to the more tried and true pathways to make money in real estate.
Today’s video, the very first one I want to talk about, pretty basic, common sense. If you were to watch none of the other videos, this is a really helpful one I think. The concept is if you buy high and you sell low, you lose money in real estate. Pretty self-explanatory. If you buy for more than what you sell it for, you’re going to lose money. There are lots of different reasons that you might have to sell, and I’ll talk a little bit more in some of these other videos ways maybe to avoid selling.
But if you buy at the top of the market and there is fear right now about the real estate market and being at a peak. What I would say is that specifically now more than ever, it’s important to have to these concepts in mind. You don’t want to buy at the top of the market and then sell for less later on. In the market right now, what we’re seeing is we’re starting to see some people that bought four, five, six years ago at a really low price, putting their house on the market, and they’re going to be selling and making a profit. We’ve seen people that have bought in 2007, 2008 in the Seattle area that are now selling, making a profit, right?
They bought low or what is now considered low and are selling high. Now if you buy in 2018 and then in 2021 or 2022 home prices are now lower than they are right now and you have to sell or you choose to sell, you’re going to lose money in real estate. The big key or the big takeaway here is if you plan to buy, make sure that you hold onto it until it is worth more than what you paid for it before you sell. That’s the intro to this whole series how to lose money or ways to lose money, excuse me, in real estate.
We’ll talk a little bit more about some of the practical steps to lose money in real estate and how maybe you can avoid those pitfalls going forward. Stay tuned. We’ve got more videos coming in the near future.