One of the best ways I spent evenings in my childhood was playing old board games with friends. Even today, I still enjoy the occasional game of Risk or Life- there’s great strategy involved, and when the stakes are high (or as high as they can be in a board game), things really get exciting.
Over time, I’ve noticed a number of parallels between the real estate market and board games. Here are a few lessons I’ve learned from participating in both:
Develop a strategy
Whether we’re dealing with real estate or board games, things rarely go perfectly. In both cases, you’re going to need a game plan (unless you’re playing Candyland, of course). There’s no one right way to pursue a real estate investing strategy, as the optimal approach will depend on the person getting involved in the space. Are you looking to play it aggressively by buying low on a fixer-upper and turning it into a saleable luxury home? Are you looking to play it conservatively by biding your time to find the home that’s right for you? Either way, you’ll benefit from consulting a real estate agent- a much-needed third party who’ll be there when you need guidance.
Lean on luck
No, counting on luck to get you through a rough patch isn’t necessarily the best methodology for winning, but it’ll play a role in how well you succeed in both real estate and gaming whether you like it or not. In the real estate space, everything from buying a home to nabbing the right agent requires a bit of luck, and you can do everything by the book and still fall short. With this in mind, it’s important to try to control what you can control and let the rest go. This isn’t so much to say that you should rely on luck to succeed in real estate, to be clear, but that you should acknowledge its role in your success while putting in the footwork.
Don’t make emotional decisions
It’s a place we’ve all been at before- the dice isn’t rolling the way you’d like it to, your player is spaces behind, and you just don’t have the cards that you need to win. Unfortunately, this type of situation occurs in real estate all the time. Whether you’re at risk of losing a bidding war on a home you’ve dreamed about moving into or your current home isn’t selling, there’s a good chance you’ll find yourself in a vulnerable position at some point during the home-buying or home-selling process. Given this fact, it’s important that you’re able to make calculated, rational decisions when the chips are down. Some of the worst binds you can get yourself into will be of your own doing, so take the time you need to relax, recalculate, and put your best foot forward.
Be in it to win it
It’s quite easy to get sucked into looking at the scenery when playing board games or getting involved in real estate. Perhaps you’re having fun browsing through the available listings in your area, or messing around with your friends while playing cards. When dealing with real estate, it’s important that you’re able to focus in on your objective- to win!
Source: Forbes