Home Selling in Park Forest>Question Details

Amber Lureau, Home Owner in Forest Glen, Chicago,...

our house value as dropped due to forclosures on our block, is there still a way to make a profit on sale?

Asked by Amber Lureau, Forest Glen, Chicago, IL Sun Mar 6, 2011

we own a 4 bedroom, 2 bath single home with fenced back yard. we paid 120 k; now value is questionable (told value at 95k by zillow) due to several forclosures on our block. is there a way to sell and at least break even if not make profit. we are looking to relocate to western suburbs.

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I tend to disagree with agents that pish posh zillow estimates and numbers. Zillow has a complex algorthym to determine cost per square foot by neighborhood geopgraphy and sales trend data. In an up market the zestimates lagged, in this down market the numbers are pretty spot on. Values have dropped 20-35% over the last 3 years across the metro Chicago market and $95k is in line with that range. The question is when did you pay $120k, if in 2000 you can probably break even, if 2005 not likely. You do need to get agent CMA for sure and project a net proceeds from sale.
1 vote Thank Flag Link Mon Mar 7, 2011
Zillow does not provide all comps for an area and they are not always up-to-date. You'll need to contact a real estae agent to get a better idea of your home's value but to answer your question, yes there is a way to make a profit or break even. How does your home compare to the foreclosures? Maybe the foreclosures needed thousands of dollars in repairs and your home is in great condition. Sale price does not always tell the total picture. Condition is just as important.
0 votes Thank Flag Link Mon Jun 13, 2011
You still have a chance to break even if your home is somehow different that anything available on your block. Please consult a Realtor who will tell you what condition were the homes that sold as foreclosures. Perhaps there were big difference in size or style and of course, condition. They cannot make up for $50,000 but perhaps you don't need to sell your home at a greater difference?
0 votes Thank Flag Link Mon Mar 7, 2011
Hello Amber :)

An accurate comparative market analysis for your home would better answer that questions along with the amount that you currently owe and your financials. Your best bet would be to find a Realtor that you would like to work with. Ask friends and family members for their referral or choose one here that has answered your question honestly. An agent will be able to, upon seeing your home, compare it with those others you've mentioned in the neighborhood and give you their best opinion of list price. Just because there are short sales and foreclosures in your area, doesn't mean that you have to give you home away. Good luck to you ~ feel free to contact me directly should you have any other questions or concerns.

Linda Dressler, Realtor®
'Helping From The Heart'
Schaumburg, IL
0 votes Thank Flag Link Sun Mar 6, 2011
Agree that Zillow prices are a waste of time and not at all accurate. If you do List your home(naturally with a Realtor) a large down payment from the Buyer and or cash may eliminate any appraisal concerns you may have. Best of luck!!
0 votes Thank Flag Link Sun Mar 6, 2011
I agree with Anna, have a Realtor, from your area, run a market report for you. The value of a home that is not bank owned is usually a little higher than a bank owned home. Bank owned homes, generally, are not in the best condition, which brings their value down. If you have taken care of your home, and it shows well, you may be able to get enough to cover your loan. However, there are other costs associated with a home sale, such as Realtor commissions. Have your Realtor run a net sheet. A net sheet will show you exactly what you need to get in order to cover all expenses associated with the sale. Hopefully, the fair market value of your home will be enough to cover all cost involved in the sale. If it does not, you may need to bring funds to the table. In, all but a few markets, homes are not selling for more than fair market value. Good luck.
0 votes Thank Flag Link Sun Mar 6, 2011

Zillow is not very accurate. You should speak to a realtor to get an idea of how much you may be able to sell your home for. Keep in mind, you'll probably need money for a down payment on your new home, as well. Make sure you factor the down payment & closing costs of the new home into the equation when determining how much profit you need to make from the sale of your existing home. A lender & a realtor should be able to help you with that.

Good luck,

0 votes Thank Flag Link Sun Mar 6, 2011
Get together with a local real estate professional for an evaluation of your house and likely selling price. We cannot value your house on-line. You need the help of a local Realtor face-to-face.
0 votes Thank Flag Link Sun Mar 6, 2011
Make sure your home is in the best possible condition before putting it on the market. Other homes may be less expensive, but if they're in foreclosure, there's a good chance they have condition issues or haven't been upgraded in recent years. You may not have the cheapest house on the block, but present a home that a buyer could fall in love with, and you may get a higher price.

Hire a professional home stager to do a comprehensive home staging consultation. They'll walk through your home with you and tell you what you can do to make your home look as nice as possible so it appeals to the greatest number of buyers. Depending on where you live, a consultation usually costs $150-$350. Some stagers will also prepare a written report for you as well.
0 votes Thank Flag Link Sun Mar 6, 2011
Don't rely on any online values, oftentimes they are inaccurate nor updated--therefore consider inviting a few local agents from different realty companies and ask for a CMA--comparative market analysis, review the data and make a determination on value--or you can hire a professional appraiser--then make an informed decision...
0 votes Thank Flag Link Sun Mar 6, 2011
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