There is plenty of news indicating that now is the time to get back into real estate… Careful, each market is different.  Unlike the stock market where the price of a stock is the same regardless of the location, real estate is highly variable depending on the location.  And even then, within each town, the values are highly volatile.

For example, if there is a foreclosure in a nice neighborhood, chances are that the neighbors know about the pending foreclosure and the value of the property is easily determined with comparable sales.

But what happens if the foreclosure is on the “bad” side of town?  Neighbors may not be in a position to know (or care) about the pending foreclosure.  Maybe there are many rentals in the area; maybe there are declining values for the neighborhood.  Buying a property in this situation may not be the best investment decision.

Some national news outlets are stating that now may be the time to invest in real estate.  My recommendation is to tread slowly and perform due dilligence.  Know your strategy before investing.

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