Home Selling in 60647>Question Details

Bj, Home Seller in Chicago, IL

My neighbor's condo unit is in foreclosure, how will that affect me if I am also selling my unit?

Asked by Bj, Chicago, IL Mon Apr 7, 2008

There are 8 units in my building, my neighbor's unit (nearly identical to mine) is going into foreclosure. They are already marketing their unit for considerably less than I am, but my unit has only been on the market for a few weeks.

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4
Bj,
As a rule of thumb, if you have one foreclosure on your block your homes value goes down 5%, two foreclosures 10%, three of more 15%. Their lower price also could hurt the appraisal on your home. In the end there's nothing you can do about it foreclosures are hurting home values across the country.
Michael Doyle Realtor
1 vote Thank Flag Link Mon Apr 7, 2008
Appraisals for normal real estate transactions, not roeclosures, are compared to other "arms length" transactions. Unless you are in a declining area, and other foreclosures start popping up, you should not see a significant effect.
Web Reference: http://www.queencitygal.com
1 vote Thank Flag Link Mon Apr 7, 2008
It will have a negative impact on the price of your condo. Make sure your place shows like a model and price it to sell. Best of luck to you!
0 votes Thank Flag Link Sat Apr 19, 2008
I'm not inclined to think there is no specific 'rule of thumb' on the percentage change of value governed by the number of foreclosed property in your or any given area. Percentage rules seldom give credit for area, terms or condition. Saying that your property is worth more or less due to a percentage specific can not be correct due to the number of foreclosures. What counts is what those properties ultimately sell for.

That being said, if several properties that are substantially alike sell for a price that is below what used to be your price median, In terms of appraisal you will suffer a loss in equity.

It is no secret that appraisers have become more scrutinized. They are under considerable pressure to accurately price homes. Market data is public record post sale and we all must deal with the fact that Banks are willing to sell foreclosed and REO property at a loss. This affects the comparative value of every home in a specific market place.

I suggest you deal with professionals that are consistant and knowledgeable in your market. Getting a competant Realtor is always a favorable first move.

Regards,


Chris Bowman
Remax Experts
Buffalo Grove, IL 60089
http://www.suburbanestates.com
0 votes Thank Flag Link Fri Apr 18, 2008
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