The Problem With "Instant Equity"

Ever seen a home listing that advertised "instant equity"? I just saw a condo where they've dropped the price and claim that you could have instant equity because a similar unit sold for $30k more.

Let's think about that for a second. I know that sometimes sellers are motivated for one reason or another, but are they really going to lose $30,000 on the deal??

In this market, it's more likely that the prices have weakened and sellers are having to be more negotiable to unload an unwanted property.

In my condo example, it may actually be a good deal, but you aren't likely to turn around and sell it right away for $30k profit. Instead, you'll have to wait on the market to heat up. So, I guess, the equity isn't so 'instant'.

Along the same vein are homes advertised for something like "$50,000 under appraised value", but yet they've been on the market for 60+ days. If it was really that good of a deal, it would have sold already!

Okay, I'll calm down now.
Have a great day!

-Peter
www.NashvilleCityHomes.com
REALTOR. City Home Specialist.