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Eh, what are the odds that you're actually good at finding such a house? I mean, everyone thinks that they're an above-average driver; people naturally overest

Eh, what are the odds that you're actually good at finding such a house? I mean, everyone thinks that they're an above-average driver; people naturally overestimate their own skills. And most people have absolutely zero training or practical experience in assessing either real estate markets or houses. And buying a house is not an emotionally neutral task that most people can remain clinically detached from: most people can't help looking at a house to buy and seeing their future there, visualizing their kids growing up there, etc. So they're likely to be emotionally attached to any house they like well enough to buy, which further reduces their ability to make a rational decision. My claim is that for every person who is actually skilled at this, there are many more who think they're skilled but really are not skilled at all.

teyc 16y ago
not that hard. It's only got only to be good enough. You are not an investor who has to invest $20M. For a 200K non-repeatable investment for someone willing to do the legwork, yes. It's like finding a GF. Most people eventually settle on someone. If you start by saying "all the good ones are taken" then you are unlikely to get any where.
- MichaelSalib 16y ago
  You are not an investor who has to invest $20M. Most home buyers are looking for a home into which they'll be dumping the majority of their wealth. They have an incredible amount on the line. For a 200K non-repeatable investment for someone willing to do the legwork, yes. Why should we assume that many people know how to correctly do "the legwork"? Is real estate market assessment and pricing covered in school now? I mean, most people lack the mathematical sophistication needed to understand their mortgages -- let alone whether buying is a good decision.
  - teyc 16y ago
    Oh yes, I agree with that. It is a lot of money for a lot of people. A house is probably the single biggest purchase that people will ever make in their lifetime. Unless they don't buy a house, in which case, it wouldn't be the single biggest purchase in their lifetime. :) There is nothing extremely sophisticated about borrowing money. But I heard that some extremely sophisticated lenders have lost their shirt recently, so one cannot be too careful.

teyc 16y ago

not that hard. It's only got only to be good enough. You are not an investor who has to invest $20M. For a 200K non-repeatable investment for someone willing to do the legwork, yes. It's like finding a GF. Most people eventually settle on someone. If you start by saying "all the good ones are taken" then you are unlikely to get any where.

MichaelSalib 16y ago
You are not an investor who has to invest $20M. Most home buyers are looking for a home into which they'll be dumping the majority of their wealth. They have an incredible amount on the line. For a 200K non-repeatable investment for someone willing to do the legwork, yes. Why should we assume that many people know how to correctly do "the legwork"? Is real estate market assessment and pricing covered in school now? I mean, most people lack the mathematical sophistication needed to understand their mortgages -- let alone whether buying is a good decision.
- teyc 16y ago
  Oh yes, I agree with that. It is a lot of money for a lot of people. A house is probably the single biggest purchase that people will ever make in their lifetime. Unless they don't buy a house, in which case, it wouldn't be the single biggest purchase in their lifetime. :) There is nothing extremely sophisticated about borrowing money. But I heard that some extremely sophisticated lenders have lost their shirt recently, so one cannot be too careful.