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by Gokenstein 2779 days ago
Probably buying it above market price and therein lies the problem
1 comments

The purchase price is not above the market. It is the market.
I agree in principle, but the estimates for my own home on Redfin would beg to differ. The value of my condo at the time I purchased it seems to fluctuate every month. When I bought it I was below Redfin’s estimate by a few thousand, now it says I overpaid by like 30 thousand.
Huh? Estimates are just that, estimates. The market price is what someone is willing to actually pay for it right now.

And yes, it's perfectly valid for market price to decrease over time if an area becomes less desirable.

Just to be clear, I was referring to the estimate of the property at a certain fixed point in time (my purchase date) changing over time. I do expect current market price to change for my home. I was just saying that these sites will estimate a value that differs and shifts, even estimates of periods during which actual market price is an available data point. March 2017 may look like a great investment when you checked in January 2018, but really bad when you check in October 2018.

Anyway, I agree with you that the market is just what people are willing to pay.

It's not determined by their willingness, it's exactly what they pay -- no more and no less.