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Home builders have an advantage when the market slows.  They can offer discounts and incentives that most Sellers can not match.  If you happen to be one of the first to have a home built in a new community, you sometimes expect that by the time the community sells the last home, you will realize some amount of equity.

For one couple noted in Newsweek, the equity on their new home is described as being in the double digits.  However, they believe that their home is losing value in the current market.  To read the entire story, click here.  

The couple featured in the article paid $750,000 to build their home.  They discuss that they believe their home is now worth 10% less than the cost to build it.  However, they also describe very expensive upgrades, and features like a $40,000 epoxy-metal roof and hurricane proof windows.  When purchasing their home, the couple spared no expense in building, and ended up with an extremely expensive home.  While the article describes the fear that the couple will end up losing money on the home, it fails to describe the values in the area, or whether or not the fact that the many expensive upgrades in the house actually made the house more expensive than those in the area.  Key information is missing from the article, and though it is mentioned that the home has double digit equity, the tone of the article leaves the reader feeling like there is a real estate crisis whereby buyers should be fearful of losing money.  It is important when reading real estate articles to look for detailed information. Otherwise, you may find yourself afraid to purchase an affordable home, in today's fair market.