Are your buyers motivated by animal spirits?

Tangible investments, like real estate, carry a higher emotional investment than intangible investments, such as stocks, according to a recent Barclays Wealth and Investment Management report.

The report warns material trappings of tangible investments (i.e., “curb appeal” of a home or other real estate) can skew judgments, often causing a buyer to pay more than they otherwise would. Deemed the winner’s curse, the winning bidder (in our discussion, the buyer whose offer is accepted by a seller under auction-like conditions, feigned by the agent) who assigns the highest value to the property is also ensuring he has the least chance of later selling it for a profit. Not exactly an investorA purchaser who holds a property long-term on a buy-to-let basis as an income-producing investment. Contrast with a speculator who buys-to-flip a property for fast profits, rather than annual income.’s ideal.