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
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.
Buffalo Grove, IL 60089