It’s 5:45pm. You’re cruising home after a long day at work. You’re starting to have thoughts about what’s for dinner and what’s on cable this evening. As you turn the corner onto your block, you notice for sale signs in front of homes up and down your block. As you gander at all the different real estate signs you think to yourself, how’d I miss this?
The reality is that not only did you miss it, but a few hundred thousand of our neighbors across the country missed it too. It started like a small hole in a dam that no one notices. The water will continue to run and pour through the hole if left unattended. Eventually, through the process of erosion, the small hole will become a larger and larger hole. At some point what happens? The dam will break.
This is exactly what has happened to the real estate market over the past years. The value of property has been in a downward spiral because no one fixed the hole. The common questions these days are, how much is my home worth, and are the foreclosures for sale in my area going to affect my property value? Unfortunately, home values are at an all-time low, and yes, foreclosures for sale in your area will affect your property value. To get an understanding of why foreclosures affect property value, we need to look at how property value is estimated.
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