This is how to hedge your real estate bet
Yesterday, I told you about a negotiating strategy that aligns with my straightforward way of providing information called: protecting your downside.
Here’s that story.
Tony Schwartz spent 20+ years as a journalist for some of the best in the business like The New York Times and Newsweek, before he wrote The Art of the Deal for Donald Trump.
In the mid 80’s, Tony spent a year and a half shadowing Trump and following him all around the world. He felt that he knew Donald better than anyone outside of the Trump family.
From that time with Donald, Tony was able to pick up on different negotiating strategies that he felt made Trump successful including the brilliant strategy to protect your downside.
Most people associate this with the financial term “hedging you bet,” so how do you do it with real estate.
The first thing that I suggest is to get a full understanding of all the possible downsides. In other words, what is the worst that could likely happen if I make this decision.
This step is essential and one that most people skip because it is not pleasant to consider.
Who wants to think about all the things that could go wrong when you are excited about buying a home?
It’s not fun, but considering the potential problems and setting limits will help your decision making while you ride the emotional roller coaster called negotiations.
My second piece of cautionary advice is to buy something that is appealing to a significant number of people. If the market is down when you need to sell and you have attractive property, then there will likely be potential buyers for your home.
If you fall in love with that one-of-a-kind home, just know that it might be impossible to sell in a tough market without giving it away.
If you want to talk about ways to hedge your real estate bet, then hit reply.
Otherwise, talk with you tomorrow.