Excerpt Chapter 1, Wealth Intelligence, Page 10

Most investors say that the first rule of buying property is location, location, and location.  I believe that people, people, and people come before location.  Focusing on the location first will cause you to land a few degrees off course.  It is possible to have two identical houses on the same street, yet one sells for $50,000 less.  This phenomenon is due to the circumstance surrounding the seller and not the location.

 
The seller is influenced by hope, fear, anxiety, and doubt, which produce unexpected anomalies and affect the decision-making process.  A higher paying job may be waiting for one person elsewhere causing him or her to accept deeper price concessions than the seller next door.  A fast resolution to a messy divorce may have the same effect on sale price. 

Always determine the specific needs of people first, and then find the property location that satisfies their need.  If the majority of candidates are looking for characteristics that match an area, be the first to buy in that area, allowing low supply and high demand to work in your favour.  If the majority of candidates are moving away, leave first and sell high before a glut on the market is created.  Understanding the needs of the people will uncover the best location to control, hold or sell and will keep you on course.