That's the excited claim I hear coming from my radio every morning. A local commercial is advertising foreclosure workshops and stating several examples in their commercial of great deals to be had.
"For example, a house in Tacoma valued at X was recently sold for X. That's $100,000 in instant equity!"
Question is, how are they determining "value"? I'm not certain myself, but from hearing the examples it sounds to me like they are using the previous purchase price to determine value. You know, the prices from 2005-2007 that were inflated to begin with. That is not the value anymore.
Sure, there may be a little bit of instant equity. But $100,000 or more? You'll be lucky to purchase a bank-owned or foreclosure and reap 4-or low 5-figure gains right off the bat, and that's after you put in some work.
So a note of caution when listening to these commercials, and remember, if you have any questions about any home, you can always ask your favorite real estate professional to help you with a little research.