Foreclosures Impact Home Selling Prices

Foreclosures impact home selling prices when you have multiple foreclosure sales in your neighborhood. It isn't a huge impact when you only have one.

In Michigan how many neighborhoods only have one home that has been a foreclosure sale? Not that many I am affraid.

I have a client that we have negotiated a short sale. The process takes time and communication with the lender. Not all lenders are open to the short sale process end when they tell you they are! We have had an appraisal done to show the reality of the market not related to the mortgage owed.

This data helps lenders who hire people like me to assess value. I do "broker price opinions" (BPO) based on real information. I am not an appraiser but appraisals are opinions by an licensed appraiser of price at a specific time and date, nothing more nothing less. Ask three appraisers and get three different answers.

Sell prices are being impacted by foreclosures and short sales like it or not. I just talked with a seller who is filling out the paperwork for a short sale. The seller can not pay his mortgage. The short sale is his best opportunity to reduce his debt in my opinion to save what's left of his credit short of foreclosure and bankruptcy.

Will this impact his neighbors sell prices? Yes. Will we price the home at a give-away price? NO. The home is not in terrible condition. It is not vacant or in deteriorating physical condition. Will it be discounted below it's true market price? Yes.

The goal is to sell fast and avoid foreclosure. The only way this can happen is to price the home attractively to create buyers. Other homes for sale in the area will help sell this home based on price.

Many sellers won't believe buyers will buy a foreclosure or short sale home over their home. It happens everyday.

Thinking of selling or need to discuss your options? Give me a call for frank honest opinions about your sell price options.

Free Sell Price Opinions in the West Michigan area.

Thanks for stopping by www.GaryLWhite.com

Call: 616-784-2360 Email: GaryWhite@FlexitRealty.com