How unique is every piece of real property? Very!
Even in a row of townhomes and a building of condos – one property is distinctly different from the next – the views, amount of sunlight, proximity to traffic, variables go on – the unique set of features inherent in each and every piece of real property can make the owner believe it is a “one of one” and often times, it is!
People can get extremely emotional with real estate (when buying, think “a life-long dream realized” or when selling, think “this is where we raised our children” and for a negative emotions, think “bad marriage”).
We have all heard of the famous “love notes” Buyer’s write to a Seller to appeal for an opportunity to own their home – please choose “my story” not “my price”!
Countless appointments with investor-owners have shown just how owners can beam with pride at their real estate knowing that they have chosen “the best” or they have a very special piece of property. The entire “tell me what you like most about the property” response is chock-full of emotion in the explanation (a tone, inflection and response I may later try and mimic for marketing the property to the public).
I used to believe this emotional response was so much more unique to real estate investing – rarely do owners look at the numbers – they had more of a positive “feeling” for the area and the house’s potential.
Investors in real estate purchasing, I believed, were so much more emotional than investors in the stock market.
I believed only investors in cars, artwork, spirits, a baseball collection handed down from generation to generation could be likened to have the same level of emotion as a real estate investor, but so not the case – we see passion and emotional attachment to other investments as well.
The news yesterday included a bombardment about TESLA stock declines, this included nothing about the company’s product line or earnings – not so much – buying and selling based on beliefs in the CEO. Another factor is our “cancel culture” and the impact this can have to drive or dive a stock price. People can and will allow attitudes toward, emotion to and defiance for a company, a CEO and corporate culture’s beliefs or allowance of certain behavior influence their investing.
Elizabeth Ann Gorski, Broker-Owner of Real Property Management Home Together
People will often ask me what makes the most successful real estate investors successful – I credit two things – consistency and treating your investment like a business – yep, that’s right abstain from emotion.
Consistency – whatever your portfolio size (one property to one hundred) and whatever your investment style, and secondly – manage your real estate investment like a business.
Being good to your Residents IS good business, upkeeping a safe environment for the Residents IS a good business (and necessary for compliance), professionally managing your property and offering Residents features to increase their quality of life and their future (credit-building programs) and setting Residents up for success in a property is good business.
Being emotional is what makes us human, it isn’t at all a bad thing to allow your feelings to move in a certain direction; consumer sentiment is constantly being measured for spending and consumption – so often we believe we are “above” being emotional, yet fear and/or positivity can drive markets, kick-start us into a recession or boom the housing market.
For real estate investments: Are you looking at cap rates? Are you looking at ROI? Or is this a personal, emotional decision and are you looking at the area as one you can envision living and betting others will too?
As long as you are aware when and where emotion and/or personal bias is driving your decision or reaction with your spending and consumption, you will better be able to identify that in the future and temper or rise above emotions and feelings.
For all your full-service property management needs in Northeast Florida, Saint Johns County, contact Real Property Management Home Together at [email protected], visit us online at rpmhometogether.com or call for a consultation (904) 209-3509
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
