A real estate investor takes pride of ownership into account when negotiating with a homeowner, but pride of ownership does not figure into an objective valuation of property for the investor. Also, an investor is not caught up in the fear and greed of the real estate market. An investor does due diligence before investing.

Every market has a psychology that shapes it. For example, in the stock market two emotions—fear and greed—shape the market. People get into the stock market based on fear and greed. They get a hot stock tip from a friend or someone at work or from someone who knows someone. This is when fear and [...]