Moving in Oakland>Question Details

Mike Willis, Home Buyer in 32835

How much should I allow the price of forclosures and distressed properties in a neighborhood effect my bid on a non forclosure quality home for sale?

Asked by Mike Willis, 32835 Wed Mar 23, 2011

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As a buyer you should make an offer based on the price of foreclosure allowing for the repairs needed . The price should be the same .If there were two identical homes. you will buy the less expensive regardless of who the seller is. Sellers are aware of this .
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1 vote Thank Flag Link Wed Mar 23, 2011
Unfortunately for sellers, but fortunate for buyers, foreclosures and short sales are a real part of the comparables in a neighborhood just as much as the non-foreclosures. As an investor you want to watch out for too high of a foreclosure ratio vs. non. Too many in a neighborhood could be an indication of an undesirable neighborhood that's loosing it's value. The average price per square foot is calculated to include all sales regardless of the reason for the sale. But if there's a home you want and think a good investment, these distressed home sales give you great bargaining power!
1 vote Thank Flag Link Wed Mar 23, 2011
Every community is different...THAT is why you should hire a local Realtor to help you with the purchase. They have the knowledge and experience to answer these questions based on the specific market in which you are looking. AND...almost 100% of the time, if you are buying a home, you do not even have to pay them...the seller pays the commission...so why wouldn't you hire a local Realtor? In Central Florida, you can contact me at http://www.JohnTheRealEstateGuy.com or give me a call at 407-558-9627
0 votes Thank Flag Link Wed Mar 12, 2014
I could not have said it better than Patricia and Gita. You do need to account for repairs in your offer, but unfortunately the prices will be the same. When it comes appraisal time, the appraiser will not differentiate between distressed properties and true arms-length sales. Let me know if I can help you. I am a REALTOR in Florida so very familiar with this phenomenon.
0 votes Thank Flag Link Fri Mar 25, 2011
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