The value of houses are affected by the most recent house sales in the area.  When foreclosures sell they do have a significant effect on the other houses in the neighborhood. 

Buyers should be aware of the facts that foreclosures often have major problems as the condition of the property is often not good. Sometimes it is in the buyer's best interest to spend a bit more for a house in good condition.

When pricing a house to sell you can add a bit for condition over the less than perfect condition of most foreclosures but if you want to sell you will need to face these facts.  JL Boney from Columbia SC tells it like it is in the following post.

 

 

Via JL Boney, III Columbia, SC Real Estate (Russell and Jeffcoat):

Foreclosures in Columbia, SC So you've decided to sell your house and you are well aware of the fact that homes for sale in your community have involved foreclosed properties. All those homes that sold in the past 6 months were bank owned and they weren't sold by an individual, but instead, they were sold by those evil banks that got us into this mess in the first place. Not only did the Cretans foreclose on the homes and kick out homeowners, but now they step in and undercut the prices of other sellers and steal their buyers. But we don't have to price our house the way the bank does, because ours is not a foreclosure, so we really don't have to worry about because ours is worth more.

Welcome to the Truth

 Well welcome to the harsh reality of what I like to refer to as the truth. It's not always a fun thing, but you have to face it if you want to be successful in today's market. All those foreclosed properties in your community do affect your home. They do lower the market value in a lot of cases, because the banks do lower their prices to aggressively market their properties. As a result, the market value of comparable properties like yours does change.

 I know that's not at all what you wanted to hear. In fact I didn't really want to say it, but it needed to be said. You can't ignore the facts.

Forclosures in Columbia, SC The facts are unfortunately something that we all have to face and foreclosures and bank owned properties are a fact of life today. They are your competition and you do have to price your house for sale in accordance with the current market value for your community.

 Another horrible fact to face is that pricing is one of the most important things to focus on when selling a house. Having a house that's in great condition is also extremely important, but if you find yourself overpriced by ten or twenty thousand dollars, you don't stand a chance of moving anytime soon. So while you may be able to get a little more for your house due to it's better condition, you may want to lose the theory that your house isn'tt affected by foreclosures. Unfortunately, we all are, and we just have to accept it and move on.

 

www.JLBoney.com

I'm Paddy Pizappi - Work with Me and You'll be Happy!

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13 Comments on I know Those Homes Sold For That Much...But They Were Foreclosures and My Home Isn't

SEP
12
2009

Paddy, well said.  We may not like it but welcome to reality.
7:20am • #1
324,296 Points 32 Featured Posts Outside Blog

JL Did a great job with this Edward
7:23am • #2
466,662 Points 2 Featured Posts

Paddy - lovely new photo - like the dress!
7:47am • #3
324,296 Points 32 Featured Posts Outside Blog

Thanks Janice
7:51am • #4

Paddy,

Exactly what some buyers I have worked with for 2 years are facing in West Palm Beach in trying to sell their nice home on the water.  Multiple condo complexes were built by unscrupulous builders along the beach near his worthy home, the condos went under water, and his home keeps depreciating.  He won't sell because his home is worth more than it is being appraised at.  We have gone on 2 home visit, sight-seeing trips, with half-hearted gusto, knowing they can't buy until their home sells. Typical for many of us I guess.
7:54am • #5
153,983 Points Outside Blog

Hi Paddy, Good post. Thanks for sharing.

Best - Sash
7:58am • #6
324,296 Points 32 Featured Posts Outside Blog

It is an oft repeated scenario Eddie Good luck

I thought it was worth repeating Sash
8:04am • #7
971,129 Points 102 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Paddy, it is so sad we have come to this. How can you compare a BMW to a Yugo. I see it every week, an appraisal with the Yugo Comps...
The way I see it,
Paul
11:01am • #8
628,090 Points 41 Featured Posts Localism Sponsor Outside Blog Hit Router Called Shot Master

Paddy - JL's post is getting rebloged everywhere!  He did a brilliant job and ALL of our sellers and potential sellers will gain from this!
7:43pm • #9
SEP
13
2009
324,296 Points 32 Featured Posts Outside Blog

So true Paul but the Yugo's are taking a toll on the BMWs

That he did Leesa.  Thanks for reBlogging so that I saw it.
5:44am • #10
149,942 Points 3 Featured Posts

It is the hardest news to tell your sellers but it is the reality we are all faced with.  Hopefully things will turn around sooner than later.
8:12am • #11
156,166 Points

As every appraiser will tell you these days, the type of sale makes little difference when determining value in a neighborhood.  We can't pretend forclosures and short sales do not exist up the street or around the block.  Everyone of them will have an affect upon the value of our client's homes.
10:07am • #12
324,296 Points 32 Featured Posts Outside Blog

That is a difficult message Kari.  But share it we must.

Absolutely Tom.  They have to affect value.
12:20pm • #13

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Paddy Pizappi PineBush & Hudson Valley NY Real Estate

Pine Bush, NY

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RJ Smith Realty Real Estate Solutions

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