What I Learned From Getting Burned in Both Buyers and Sellers' Markets

John's real story is shared below, with his name changed for privacy reasons.

My name is John, and I’ve been investing in real estate for over 10 years. I’ve had my share of wins and losses along the way. Some of my biggest mistakes happened because I didn’t recognize the shifting dynamics between buyers and sellers markets. I learned these lessons the hard way - don’t make my mistakes!

A few years back, when inventory was high, I snapped up a rental property without doing enough diligence. I assumed I could negotiate a sweet deal in a “buyers market” where homes sat for months. Wrong! Turns out the owner was highly motivated for a quick sale. I overpaid and soon needed to invest more in repairs.

As an inexperienced investor, someone who's not after the big money but just doing it for the good of their children. Just as that property bled me dry, and hte memories lasted for a long time - things shifted. Years later, buyers competed for limited listings. Bidding wars erupted. I decided to sell my renovated property to capitalize on the “seller's market” upswing.

But I priced it too high at first, greedy for maximum profit. I should have aligned with comparables. After a price drop and nearly missing the peak, it finally sold for less than I’d hoped.

These mistakes taught me the importance of recognizing market conditions and adjusting strategies accordingly. Now I pay close attention to metrics like:

• Inventory changes - are listings rising or declining each month?
• Sales data - are homes selling above or below list price?
• Days on market - are properties moving quickly or sitting longer?
• Number of showings - high traffic indicates competing buyers.

By tracking this data, I’ve gotten better at spotting transitions from buyers to sellers markets. I know when to get aggressive with purchases or hold off for better leverage.

No market stays the same for long. The key is reacting quicker than other investors as conditions evolve. Whether negotiating deals or pricing listings, insight into where the market stands gives you an edge.

Now I share what I’ve learned to help other real estate investors avoid costly mistakes.

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You can learn How To Recognize Buyer Or Seller Market by click on the blue part.