The housing bubble. The dot-com stock craze. The Florida land rush. The Dutch tulip mania. Throughout history, men have jumped at the opportunity to get rich quick, even when the opportunity was clearly too good to be true. Why do we fall for it every time?
Blame the reward centers in your brain. The nucleus accumbens and ventral tegmentum. Both areas flood with the neurotransmitter dopamine when you have a chance to make money from a gamble, says Russell Poldrack, Ph.D., an associate professor at UCLA’s Brain Institute. As potential riches increase, so does the dopamine flow. “Dopamine is the target for cocaine and amphetamines,” says Poldrack. “It’s what really drives people regardless of the consequences.”
Perhaps worse, success begets even riskier behavior. In other words, successfully flipping one house makes your desire to flip another even more intense, says Poldrack.
How can you rein in your reward centers? It’s not easy. Humor and sex are great distractions, because they trigger the same midbrain response, says Poldrack. But the best advice is to retain your objectivity and historical perspective. “It’s fun to swing for the fences,” says Robert Strong, Ph.D., a professor of investment education at the University of Maine. “But before you do, remind yourself of all the things that can go wrong.”
Then go have sex.
REBECCA SHILLENN
A Flip Too Far
The writer at the W Hotel: “It had become my family’s Hotel California. We could check out any time we liked. But we could never leave.”
By Mark Millhone Photos by MacKenzie Stroh
THIS SOLD HOUSE
It’s a buyer’s market. Until you do this. If you’re showing your house
to prospective buyers, you know the old ploys: Build a fire, bake some
bread, put out flowers, play soothing music, hide the bloodstains. But
don’t stop there, especially in today’s market. Here are a few other
sneaky ways to impress potential buyers, courtesy of Mike Wixted, a
regional trainer for Home Depot.
1 Unclutter your kitchen cabinets and closets.
If they’re crammed, it looks as if there isn’t enough storage space.
2 Replace your worn doormat.
It’s the best $20 you’ll spend, and you’ll take it with you anyway.
3 Don’t paint any rooms.
The buyer will probably be doing that. Instead, clean the baseboards in high-traffic areas.
4 Do paint the front door.
You know—first impressions and all. Also make sure it swings easily and doesn’t creak.
5 Don’t upgrade the bathroom.
It’s the first room the buyer will want to renovate. But scrub the toilet and tile, okay?
6 Seek a second opinion.
Ask someone you trust to do a coldhearted walk-through. “I had my father-in-law look over our property,” says Wixted. “Ouch!”
