Short Sales Affect Comps!!

Real Estate Agent with Prudential Kelstrup Realty

With all the forclosures and short sales happening all over the country, I have had my work cut out for me when I have to inform a client or prospect that the value of their house may not be close to what they had in mind.

I have to let them know that if there are short sales happening in their neighborhood, and the bank requires an appraisal, the short sale price on homes will definately affect the value of their home. The banks don't seperate the short sales from the rest so a house being sold as a short sale that sells for 100,000.00 below fair market value, can really put a damper on your listing appointments.

Comments (4)

Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re
Too many times the appraiser has not seen the condition of the Short sale and don't give enough value to the traditional sale for the condition of the property.
Apr 02, 2008 05:48 AM
Angelia Garcia
Pure Realtors - Dallas, TX
So when you inform them of this bad news, do you still do the listing? I find that I am doing more consulting than ever before because the equity in homes is alot less than 2 yrs ago.  I would think if they didn't want to be realistic, I would be throwing away lots of advertising monies.
Apr 02, 2008 05:50 AM
Ed Ramsey III
Prudential Kelstrup Realty - Bellingham, WA
That is very true Angelia. I have to work alot harder to bring them back to thinking realisticly. alot of the time, they are thinking something in their head that is'nt very realistic, but by probing deeper, once i get them to elaborate on it, they realize that when they say it out loud, it is'nt very realistic at all.  I also inform them that in order for me to put up that kind of $ for advertising, I expect to get the property sold, regardless of the current market conditions.
Apr 02, 2008 05:55 AM
Keith Miller
Dakid's Network of Associates - Joliet, IL
I know in your area in Washington the homes are very expensive. I have ran into the same problem here in Illinois. But there's nothing like what's happenning in Indiana! NW Indiana is only 30 minutes away from downtown Chicago, and the property values are plummetting into levels less than some non-luxury cars. The areas that take the greatest hit from the Indiana decline is the South Suburbs of Chicago which happens to be the most heavily populated area in Chicagoland. I can truly understand how your area can be affected because it is on a much larger scale. But in a 30 mile radius in the Chicagoland area, you can have a 2 bedroom condo downtown that's worth 900k and with a little less than a half an hour drive, you can run into a 5 bedroom, 3 level, 2 bath, full basement, 2.5 car garage on a full 1/4 acre lot- for 29,995.00-Less than a Maxima SL!!!!!!!!! Ouch! I totally understand your problem, and on a smaller scale, I feel it all the way down here in the midwest too!
Apr 02, 2008 06:02 AM