It has been said that those who don’t learn from history are doomed to repeat it. With the real estate market in tax down cycle, it’s a good time to mull over some of the more common “no-no’s.” Here are my picks for mistakes to avoid -

TRYING TO PICK THE TURNS

Many sellers and buyers play this game, trying to time their sale, or purchase, to tax mistakes the top of the market and gain optimal profits, or to swoop in and pluck up cheap property after a burst. This is a year when the seller’s market has turned into a buyer’s market and prices have eased. But the slowdown is unevenly spread across the country. But nowhere has there been a dramatic “pop” and you probably shouldn’t expect one. Historically, for the most part, real estate bubbles don’t pop, they just slowly deflate and the market levels off then surges again.

Always take the approach that real estate is a long-term investment.

NOT UNDERSTANDING THE LENGTH OF THE BUYING/SELLING PROCESS

You know what happens when you make decisions based on optimism, time-on-the-market averages and generous promises from agents — ye old Murphy’s law kicks in. The home-selling process is often more drawn out than you think, from the early planning, to arranging finance, to difficult negotiations, to final inspections, to oft-delayed closings. Give yourself extra time to complete the deal.

EXPOSING YOUR HAND

Try to contain your enthusiasm for the house you are considering buying, otherwise, it will cost you money. You can scream “yes!” when you get back out in your car.

ASSUMING THE APPRAISAL EQUALS ACTUAL VALUE

In theory, appraisals are objective opinions of value. But emotion and self interest can play a part so ask your agent for a range of figures, an optimistic one and a pessimistic one. Work on the pessimistic.

Graduated from Sydney University as B.Ec and Accountant. Employed in Research of large Sydney stock-broking firm, then to advising private clients and administering arbitrage operations and Sydney Greasy Wool Futures Exchange membership. Then to dealing with institutions and listed companies assessing underwriting propositions and raising capital. Expert knowledge of investing and speculating in shares, options, derivatives and involved charting. Also involved raising many millions of dollars for a number of mining and property groups and promoting three substantial market takeovers. Acquired controlling interest in a publicly listed property development company and undertook residential subdivisions in Hornsby Heights, Warrawee, Blacktown, Beecroft, Castle Hill industrial subdivisions in Baulkham Hills, Lurnea home unit developments in Hornsby, Wahroonga, Tugun, Runaway Bay, shopping centre developments in Wentworthville and office building developments in Castle Hill and Parramatta ($25ml)