3 real estate behaviors that can ruin finances

Mood of the Market

I recently read and reviewed Carl Richards’ "The Behavior Gap," which presents a series of Sharpie-on-napkin sketches and corresponding commentary intended to correct the most common behavior gaps in the realm of financial planning and investing. Richards coined the phrase "behavior gap" to refer to "situations where our behavior leads us to subpar results."

In the wake of reading Richards’ book (which, by the way, I strongly recommend if you’re at all interested in simplifying your personal financial plans while upleveling their effectiveness in helping you live the way you want to), I can’t shake the notion that there are a number of very common behavior gaps in the real estate market as well: I’m talking about ways in which our emotions and psychology and behavior causes subpar results in our dealings with our homes, primarily, not investment properties.