One thing that is very common in the area that I live in is the fact that there are a lot of real estate for-sale signs on the streets. On one block alone, there are probably at least five for-sale  and open-house signs. With the real estate market on a slump, thousands of homes are sitting in the market for a number of months. So I am really surprised to see a home sold in just three weeks!!

How did I know this? I was not browsing the internet or any mls listing or even reading the newspaper. All I did was walked in my neighborhood. There was this home the previoys homeowner fixed. I actually see the remodeling in the process as I always passed this by when I walk to work. They installed new metal roofing, remodeled the kitchen with granite countertops, landscaped the front and backyards, and remodeled all the rooms and bathrooms. It is a very decent house that has four bedrooms and 2 bathrooms.

So how did it sell so fast? They priced it so right! The new homeowner does not have to do anything and the price is way cheaper than the other ones that are being sold in the block. So when prospective homebuyers pass by, and they look at the other homes at a lower quality than this home, those prospective homebuyers thought that they are getting a good deal.

It is true that they are getting a good deal at that point in time. But one year later, when real estate slide again for another 10-20% decline, that bargain may not look like a bargain at all!!