Evaluate risks before buying

Good advice from our friend Scott Skinner in Tempe, AZ.

Here are three considerations when evaluating risk before deciding whether or not your next real estate buying opportunity really is as good as it looks.

1) Comfort level - too much stress, fear , and unhappiness, are lingering effects of taking a risk larger than you may want to handle

2) Can you afford a loss - if there is one thing this difficult period in real estate has taught us, is that real estate is not guaranteed to go up forever, ask yourself if you can afford to hold your real estate years and years past what you had hoped.

3) Opportunity cost - deciding not to buy that "good deal" may be the best investment you ever make. Experts will tell you that there are always other buying opportunities. If you have the money in your pocket and the ability to make a decision when it presents itself you may find that opportunity that you could not have take advantage of if you had purchased that deal on which you passed.

Yes, There are a lot of great deals. and yes, we all take risks in life, personally and professionally.

The purchase and finance of a home is a risk that most people take. Historically, it has been very rewarding.

However, be prudent, make sure you do your research, double check your finances, and evaluate your risks.

Thanks, Scott!