Overconfidence with real estate kills deals
Dec 8 2011 2:54PM
A confident person certainly interviews better, but in real estate deals it is best to keep modest. Inman.com made a list of ways overconfidence can harm buyers and sellers in the housing market.
According to the source, sellers who are overconfident in their home's appeal, their understanding of the housing market and their ability to negotiate are more likely to overprice their home. Potential homebuyers don't usually make it to the doorstep because they have already compared prices with other homes in the area. Less showings obviously mean less offers, and no offers means there is no sale. Pricing properly is crucial in the current housing market.
When buyers are overconfident, they typically believe there is less competition and that they have more flexibility than what there actually is, says the source. This can lead to buyers making offers way below an acceptable price, which stems from a misunderstanding of the market as a whole. This also creates delays in sales which keep both buyers and sellers from attaining success in real estate.
There is definitely an ample amount of data to support smart decisions when it comes to buying and selling, but overconfidence can work against readily available assistance.
