i hope this helps
Buyers are trying everything to get the best price for their purchase so they will take a short sale sales price into consideration when placing an offer. Your best defense against that comp is to be educated about the property to be able to dispute it.
You're really asking 2 questions here and so you shall get answers to both of them.
Will a realtor pulling comps for their buyers REALLY consider short sales when deciding what to offer on your house? Absolutely. If I'm that realtor and I am working for my buyer I will use whatever reason I can find to try to negotiate your price down.
How much will a short sale in my neighborhood (of similar townhomes) affect the value/selling price of my home? Well, you're not selling here, but valuing your home. If this short sale is an outlier, an appraiser can choose to not use it. If the short sale is part of a pattern, there's no way we can ignore it and then it will most certainly affect your home's estimated value.
Hope this helps clear it up some for you.
Jacobus "Jack" Vollenberg
RE Appraiser - Vollenberg Appraisers
Realtor/REO Asset Manager - Bridgewater Realty
Office (908) 968-0336
Cell (973) 590-0142
The fact that it was a short sale does not matter. If the seller put down 50% or lived in the home for 10 years and had good equity in the home it would have just been a regular sale but the sales price would have most likely been the same as that reflects the current market conditions.
The fact that it was a short sale is because the buyer did not put much or any money down on the property to begin with. Short sales are done because of low equity position in the property and have nothing to do with the sales price.
Hope that helps.
The answer is not an easy one.
If the only comparable sales are short sales, then yes.
If there are many comparable sales, and only a few short sales, then not so much.
Location, condition and upkeep are a huge indication of what will be offered on your home.
Keller Williams Realty - Atlantic Shore
In short the value of your home is affected by every sale in your neighborhood. What needs to be determined is what's the norm and overall average.
I would say an agent listing your home should not pull short sale comps to price your home if they dont need to do so. I do think they should show you short sale comps so you know what you may be up against. Most buyers I work with dont have the time or ability to even offer on a short sale because of time frame or something to sell or whatever. Since the pool of buyers seems larger for traditional sales it makes me think those homes should be worth more.
you should inform yourself with the areas standard sales and know the short sales. Have all the info on the actives and solds. So when an offer comes in you will be fully versed on any considerations.
Ask your realtor for all this info. and if you do not understand it make an appointment to have it explained.
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