What to Know About FOMO and FOMM When Investing in Real Estate

Real estate involves a lot of money, unknowns, and a significant time commitment, so all of those things lead to FEAR. Fear Of Missing Out and Fear Of Making A Mistake, are both real fears, but with different behaviours associated with them. FOMO is related more to impulsive behaviour whereas FOMM is related to hesitation and both play a huge role in investing. Being able to identify which one of these you lean towards, will help you become more aware and keep you from making an investment mistake (by being too impulsive) or of missing out on an investment (due to fear of making a mistake). Google AI came up with “FOMO (Fear of Missing Out) drives impulsive actions due to the perceived fear of others' success or better experiences, while FOMM (Fear of Making a Mistake) causes paralysis and inaction due to the fear of making wrong choices, especially in investment or purchasing decisions. FOMO can lead to buying high or overspending, whereas FOMM can result in missing opportunities and delayed decisions”. Know yourself, analyze the investment and if you feel you may be looking at an investment from either FOMO or FOMM, institute one of the lifelines from "Who Wants to Be a Millionaire" to help you through.