Today was an intensive real estate day. Did a complete analysis of Scottsdale and North east Phoenix and found that there are still a lot of good residential bargains available.
The media keeps telling us that the Real Estate market is picking up and prices are leveling off. Homes that are at bargain rates, i.e. under $100,000 in a 200,000 – 300,000 Thousand neighborhood are selling very fast. Most of these buyers are investors. They will be fixing up the home and then renting it our until the market changes, or, if the price paid was low enough, they flip the house.
You may be curious as to how a home can be “flipped” in this market. This occurs, when a bank owned property is sold way below the current depressed market. Perhaps they could have obtained $150,000 for a home but they list it at $100,000 and then the investor can turn around and sell it for $150,000.
The bank owned properties and short sales are destroying the market place for those that have to sell and don’t have to give their property back to a bank. There is very little control as to the value of a home and in many cases, the local listing agent puts a low price on the home to obtain a quick sale and commission.
In the “boom” market we experienced several years ago, we had “scams” that cost banks and home owners a lot of money. In today’s market, the scams are still there, but they have taken on a different look.
Be very careful what you buy, or who you ask for help if you are having financial problems.
If you are constantly looking back, chances are pretty good you’ll fall into a hole ahead.
Have a great day!