Home Buying in 75032>Question Details

Tina Eubanks, Home Buyer in 75032

Does the price of a home that has been foreclosed go up or down on the price after it is back on the market.?

Asked by Tina Eubanks, 75032 Sun Jan 4, 2009

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7
Tina,
The bank is getting bids on the repairs. They are looking to redo the paint to remove some of that "pepto bismol" and green slime colors off the walls, new carpet and new vinyl in the kitchen.

Even after those repairs, they won't relist it for more than previously.

Naima
214-289-8555
Naima@Sumner-Realty.com
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Sun Jan 4, 2009
I agree with most of my colleagues on this topic. The bank will try to get as close to fair market value as they can after a foreclosure but it also depends on how many homes they are sitting on at that moment and how quickly they want to get it sold and off of the market.
0 votes Thank Flag Link Fri Sep 19, 2014
Tina,
It can go both ways. If the home was in bad condition during the initial listing period and the bank does repairs, the price may go up. Also if it was listed as a short sale, the listing price can really be anything. I've seen some pretty agressive prices on short sales, but that doesn't mean the price will be accepted by the bank. The seller can sign for any price they want on a short sale, but the whole deal is dependant on getting the lien holder or bank to sign off on the deal.
Normally I see prices go down a bit though. Normally the sellers can't take a hit on the price so they have to list it for enough to pay off the loan and their closing costs and fees. Sometimes that is above market value. If it is then likely the bank or lender will list for a lower price after foreclosure.
There are lots of variations and each deal is different so it's tough to say with 100% accuracy.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sun Jan 4, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Usually most prices go down, the current ownbers usually owe more than it is worth but have to ask what the owe to cover the mortgage. once it is foreclosed the bank will then list it as current market value or below market value depending on how quick they want to sell it. what the seller owed has nothing to do with current value or what the bank will ask, it is all about current market value for that area. good luck with your search
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Jan 4, 2009
Sometimes, there isn't a "before" price. Let's say someone bought the house for $500,000 in 2005. They fall behind on payments. Meanwhile, the house is now only worth $350,000. Sometimes you'll see a pattern--it'll be listed for $500,000. Then, when it doesn't sell at that price, the owners will attempt a short sale at $350,000. If it doesn't sell then, and gets foreclosed on, it'll come back on the market...often/usually for less than $350,000. But it really depends on the BPO provided to the lender. Now, realistically, the BPO should take into consideration the fact that the house had been listed for $350,000 and hadn't sold. Therefore, it's worth less than $350,000. But BPOs aren't always accurate.

In other cases, though, the owners won't go through that whole process of attempted sale. They may have talked to a Realtor who provided a CMA showing the price drop, and the owners may simply have stopped making mortgage payments. So you don't have that pricing history.

And maybe when the market strengthens, it could be possible to see a house actually put on the market for more than had been asked for it pre-foreclosure. But, in today's market, generally the price of a foreclosed home will be lower than what was asked pre-foreclosure.
0 votes Thank Flag Link Sun Jan 4, 2009
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
In most instances home is less. If you are searching for home foreclosure with equity contact my office

972-699-9111
Lynn
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Jan 4, 2009
Hi Tina,

I have never seen one posted for more. It is always down.

Naima
214-289-8555
Naima@Sumner-Realty.com
Web Reference: http://www.sumnerrealty.com
0 votes Thank Flag Link Sun Jan 4, 2009
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