You do have some things going for you. First, distressed sales are noted for not having had the best care and in many cases, been vacant for months or even years before reaching the market. With this said, making your home stand above all others in condition demonstrating "pride of ownership" can help sellers get an edge on others. You'll likely heard of the phrase in real estate, "location, location, location." Well in this case, sellers should be reminded of the following,"condition, condition, condition" because this will get the attention of buyers that may be considering distressed sales.
Additionally, short sales are often priced at a level which is lower that their lender will approve, thus, the eventual selling price will be considerable higher that the listed price. This is not something commonly known by buyers but it is reality.
Essential to selling in a competitive market is the importance of pricing the property right and making it "shine" in an effort to stand out above all others.
Hope this is helpful,
1. The number of foreclosures and short sales within the community is a factor. You have to also look at how many other homes have sold that are not bank owned sales or short sales. It is the appraiser professional to the value of the home. Appraiser use the closes 3 homes that best match the subject home they are appraising. If two of the homes are banked owned closed sales and one is a typical sale from an individual owner the appraiser has to use those comps however, they will take into account and note that the comparable homes were banked owned.
2. If there are 3 comparable home sales that are not foreclosures the appraise will use the traditional sales and not the foreclosures. If there are multiple foreclosures in an area over months or even years this can slow the appreciation of home values.
NOTE: Appraisers pull six months of sold data to find a home that compares to the subject home they are appraising. They also stay within a three-mile radius of the home they are appraising. They will use the homes that are the closest to the subject home they are appraising.
I can no speak to the homes in Wesley Chapel, but I can speak to the homes here in Miami. Can short sales and foreclosures affect prices, yes of course they can somewhat. Contrary to the common belief, just because a home is a short sale or a foreclosure does not mean that they are going well below the current market value. When the banks are approving short sales they are looking at current market activity and basing the approvals on the sales prices within that area overall. The banks that are selling their REO inventory , have already taken a lose and they too will be looking to maximize their net sale based on the current days' market price. Appraisers will use the closed sale of all properties sold within a certain radius of the subject property and make any adjustments based on size, overall condition and the terms of sale if they are able to determine that information. Appraisers are trained to know how to make the adjustments and will include information of the homes sold in a area , diregarding whether it was a short sale , foreclosure or just a traditional non-distress sale. Right now, there are homes here in Miami that not only are going under contract within days of appearing on the market, but many even going just above the listing price.
The key in selling your home will be that you will want to work with a Realtor that understands your local market and can provide you with the information of the homes you would be competing with, along with information on the most recent sales. Properly pricing your home at today's market price is vital. Good luck with you home sale.
RE/MAX Advance Realty
Short sales and foreclosures seem to be in just about every neighborhood and every price range, they certainly have impacted values. If the buyer of your property needs a loan for their purchase the property will have to appraise. If the appraiser can not find enough traditional sales (they usually need 3) to use for their comps/data they will need to use the distressed properties. Most lenders require that appraisers use sold comps that are less then 6 months old if possible.
Dan Simon, RealtorÂ®
Carolina One Real Estate