Are you trying to sell your home in this distressed market? Not a short sale, not a foreclosure, but maybe you just want to take advantage of some of the deals that other buyers are looking into? Unfortunately, your home’s market value is related directly to the distressed sales, whether short sales or foreclosures, that dominate the market surrounding you.
Before the real estate economy tanked, home appraisers would often chose to ignore a distressed sale or two around your home when doing the appraisal. Now, however, that is not the case.
When pricing a home with equity against a foreclosure or short sale there are a few things you should think about. In this market, the price that you believe your home is worth doesn’t stand up against the buyer’s beliefs if they disagree.
-Why would a buyer chose to buy your home over a short sale or foreclosure?
-What are the reasons that a buyer’s lender would have to appraise your home for more than a short sale or foreclosure?
-How much more is your home actually worth than a distressed sale?
I think you may be surprised that there are not a lot of differences, even including the upgrades that you may have or not have. Buyers are looking for a good deal, as you may be, if you are selling your home, so keep that in mind.
Apples are not oranges. And you can not compare them as such. So make sure when you are comparing homes that may be distressed in your area to price check yourself that you are not comparing a home that is in a completely different class. Homes you should look to for comparrisons should be:
-homes that have sold in the last 3 months
-homes that are no farther than about 1/4 or 1/2 mile away (unless you are in a rural area)
-homes that have similar square footages, within about a 10% range of difference
-homes that were built around the same year as yours
-homes that are on the same side of dividing lines as yours is (such as major streets or in the same neighborhood)
Now, as a buyer keep in mind that short sales and foreclosures are not your only options, though there are many of them flooding the market these days. In some cases you can find amazing deals that have nothing to do with financial distress. Some people are chosing to sell their homes right now so they can do the exact same thing that you are doing: capitalizing on the great deals that exist.
In order for these selling homeowners to make a timely purchase in this market, many of them are hasty to free themselves of the property they currently own. If you are a flexible buyer you can find that these properties may represent a terrific value to you since they are making large price adjustments in order to attract a broad range of potential buyers who have their eyes set on the less expensive (typically) short sales or foreclosures.
If you would like help finding a home or have any real estate questions, please give us a call at Occasio Realty today! 480.699.1820
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