Home Buying in Plano>Question Details

Deborah Jenk…, Home Buyer in Plano, TX

I'm want to buy a foreclosure. My agent said bank looks at comps to price. The comps are from well maintained homes. This one is not.. true?

Asked by Deborah Jenkins, Plano, TX Thu Nov 18, 2010

Help the community by answering this question:



To answer in short, most banks have 2 Broker Price Opinions done, giving value, and 1 appraisal. Each one can use both well maintained homes and foreclosures, and adjustments are made for the differences AND repairs needed on the subject home.

Hope this helps!
0 votes Thank Flag Link Thu Nov 18, 2010
In some neighborhoods there are so many bank owned and short sale properties that the people who need to sell can't not because they are behind on payments but due to job changes or whatever. They are unable to get a good price for their homes because of the bank looking at these comps. It sound like you are in the opposite situation where not enough foreclosed homes have lowered the price. If it is a foreclosure isn't the price already set? So I am not sure what you are asking. I would listen to what your agent is saying.
1 vote Thank Flag Link Thu Nov 18, 2010
Deborah, it is a great time to buy a foreclosure. There are some great deals out there. There are also some real dumps. Make sure to have a good home inspection done on any properties you are thinking about buying. Good luck!
0 votes Thank Flag Link Sat Nov 27, 2010

Every bank or owner is different. Some foreclosures are good deals, some aren't. Typically they need work, but not always. Often they need significant work. On average I see discount, but by the time you make the needed repairs we're back up to the same price as non-foreclosures.

Foreclosures should sell at the fair market value...for a home in that condition. If in perfect condition then at the condition of other perfect homes.

HUD foreclosures have had an appraisal and are listed at the appraised price.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Thu Nov 18, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
Dear Deborah: This home is located in Stewart Peninsula in The Colony. It is not a foreclosure property. As far as comparable properties, banks will look typically look at comparable properties that have SOLD in the same subdivision in the last three to six months. Some may be foreclosure properties and some may homes sold by an individual not in foreclosure. Please let me know if you have additional questions or concerns. Thank you.
0 votes Thank Flag Link Thu Nov 18, 2010
Whether IT IS a bank owned property OR property owner comp's on price of home is determine based up to 6 months SOLD activity. Most appraisals will include one foreclosure. Home is compared to 4 - or + "like homes in the area"... based on sq. ft., year built, room count.

BANK has an entire library of info. on any foreclosed home including pictures and etc. including conditions report.

MUCH goes into determine value of any home EACH home stands alone.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Thu Nov 18, 2010
Condition is going to affect the final value. They will send out their own appraiser to get an idea and typically will price it low enough to attract a buyer quickly.
0 votes Thank Flag Link Thu Nov 18, 2010
your agent should document the difference between the comps and the one you want to buy
0 votes Thank Flag Link Thu Nov 18, 2010
Deborah, which home are you referencing as "not" well maintained... the one you're looking to buy?
0 votes Thank Flag Link Thu Nov 18, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Texas > Collin County > Plano > Home Buying in Plano > Question
Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer