There has never been a better time to purchase Charlotte Real Estate. It is incredible to see the opportunity within Charlotte Homes for Sale based on the current fiscal challenges. As lenders continue to constrain cash flow many are poised for opportunity!
There are many custom homes that are brand new and have been on the market for several years. Charlotte Real Estate still has the same strong demand it is just now the buyers are not able to sell their out-of-state homes. Do you still smell housing opportunities?
The time to take advantage is before the economy picks up and when the real estate market is at its slowest. Call today for help finding that ideal home or visit Charlotte Real Estate - Charlotte NC Homes for Sale to learn about the greater Charlotte area and the Charlotte Suburbs.
Showing posts with label Charlotte Property Investments. Show all posts
Showing posts with label Charlotte Property Investments. Show all posts
Tuesday, August 18, 2009
Tuesday, January 20, 2009
Charlotte NC Homes For Sale and the Illusive Home Equity
Many people are searching for a great Charlotte home with lots of equity. First we must understand more about "real home equity" as opposed to "theoretical home equity".
Real home equity is when your home is worth more than you owe. The difference is your home equity. Now what is your home really worth. The market value of your home is worth what a normal person is willing to pay at any given time.
If someone was willing to pay $500,000 two years ago but you owed $300,000 then "IF" you would have sold it then you would have had $200,000 in equity. Let's say now you can only sell the home for $325,000. Your home equity is now only $25,000. If the owner is selling now trying to sell it for $400,000 and states he is "giving you" $100,000 in instant equity, what are you really getting.
You do not buy homes base on the price it sold for at the peak. Consider this like you would purchasing stock in coca cola. Would you be willing to purchase the stock above the current value if the stock was once priced twice of what it is today? No you would not (if you would I have some stock for you to buy).
You purchase a home at today's market value. If you purchase a home that is discounted, you have just reestablished a lower market value for the community. Yes the prices will likely rise in the future and in a few years the purchase "may" have proved to be wise. If you are purchasing a home in a declining neighborhood, is it really at the bottom? There are many factors to consider.
If you would like to share ideas or learn more about the greater Charlotte Real Estate market then visit my website or pick a phone and give me a call @704.770.6559. I can assist you with your Charlotte Real Estate Investment.
Real home equity is when your home is worth more than you owe. The difference is your home equity. Now what is your home really worth. The market value of your home is worth what a normal person is willing to pay at any given time.
If someone was willing to pay $500,000 two years ago but you owed $300,000 then "IF" you would have sold it then you would have had $200,000 in equity. Let's say now you can only sell the home for $325,000. Your home equity is now only $25,000. If the owner is selling now trying to sell it for $400,000 and states he is "giving you" $100,000 in instant equity, what are you really getting.
You do not buy homes base on the price it sold for at the peak. Consider this like you would purchasing stock in coca cola. Would you be willing to purchase the stock above the current value if the stock was once priced twice of what it is today? No you would not (if you would I have some stock for you to buy).
You purchase a home at today's market value. If you purchase a home that is discounted, you have just reestablished a lower market value for the community. Yes the prices will likely rise in the future and in a few years the purchase "may" have proved to be wise. If you are purchasing a home in a declining neighborhood, is it really at the bottom? There are many factors to consider.
If you would like to share ideas or learn more about the greater Charlotte Real Estate market then visit my website or pick a phone and give me a call @704.770.6559. I can assist you with your Charlotte Real Estate Investment.
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