The Common Analysis Mistake Too Many Investors Make

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Market Analysis: A Common Error and How to Fix It

🚀 The Quick Tip

Looking at comps is not the same as knowing your market.

One of the biggest mistakes investors make? Relying too heavily on recent sales without understanding why those properties sold the way they did.

Here’s the most common error:

But markets are more than math — they’re momentum. And momentum is driven by:

• Days on market trends

• Shifts in supply/demand

• Buyer sentiment

• Local economic factors

• Changes in financing options (like rising interest rates)

Ignoring these means you might be pricing your flip too high, overestimating your ARV, or buying into a softening neighborhood.

🛠️ How to Fix It

1. Zoom Out Before You Zoom In

   Before diving into comps, check the macro trends in the area. Are prices rising or flattening? What’s inventory doing? Is demand steady or fading?

2. Look at Pending Sales

   They tell you what buyers are actually paying right now. Closed sales are 30–60 days old news.

3. Talk to a Local Agent

   Not just any agent — one who actively works that ZIP code. Their gut-check insights are often more valuable than any spreadsheet.

4. Watch the Subtle Signals

   Price reductions, seller concessions, and days on market creeping up? That’s your cue to be cautious.

✅ Bottom Line

Don’t confuse data with insight.

Market analysis is part science, part street smarts. To win, you need both.

And here’s the thing: Real estate trends usually move slowly enough that anyone can see what’s about to happen — but only if you’re paying attention.

Ignore the signs, and you’ll always be a step behind.