I was reading an article this morning on a buyer who saw the "value" of homes in a particular neighborhood on a web site that assigns values. He then noticed the prices were less than the web sites assigned "value." He was considering here because of the perceived instant equity.
Folks, those days are gone! At least, for now. That sounds a little direct but it is the truth! Look at some of the folks who purchased within the past few years with sub-prime mortgages. Some of these buyers intended to re-sell before the loans adjusted. Now they are paying the price.
It has been said that the current real estate market is the result of too much speculation. That is probably pretty accurate.
When purchasing a property examine your motivation. Over the long haul real estate has been said to appreciate. My point, don't look for instant equity because a property is only worth what a willing buyer is willing to pay on a given day, in a given market!
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