To Hell with Price, what’s the VALUE of that house? We obsess about home prices, when we should really obsess about home VALUE. So what’s the difference? When pricing a home, nearly everyone focuses on sales comparables. Those who are a little more informed also look at current listings when working on pricing a home. That’s usually where in ends with price estimation most of the time.

When valuing a home, sales comps and current listings are very useful but you need to understand the local market under-currents. By also knowing the foreclosure activity, the flipping activity, the market trends and individual property foreclosure history you will understand underlying market conditions.

There’s a good analogy to be gained from ocean beaches; swimming between the green flags with lifeguards around is generally as safe an area as you’ll find. If you swim near a red flag, there is a strong possibility of a riptide that could carry you out to sea or underwater. So it is with real estate. If you don’t pay attention to everything going on, including foreclosure and flipping activity, you could find yourself underwater in your investment property or home in a hurry.

A HomeRisk Report from www.homesmartreports.com will help you avoid real estate riptides.