Many of my customers have asked this. Then, they follow up with why is my house value declining?
I cite this statistic: Say two homes of the same size sold for $150,000 in the last three months. Then, a third home, a foreclosure (Real Estate Owned-REO) sells for $130,000 because the bank wants to move it quickly. Now, the "average" price of your home has gone down to $143,333 - add the three together and divide by 3. Simple math and what the banks and appraisers will use.
Now, let's say that REO/foreclosure was "stripped" by the owners - cabinets removed, flooring removed, countertops and appliances removed, holes put in walls, water left running, just to name a few of the things I've seen in foreclosed homes. They caused at least $25,000 in damage, making the home value at $125,000. The probable buyer for this home will be an investor who wants to "fix and flip" or retain as a rental, but expects equity because, hey, they are savvy investors. They will probably offer $100,000 for the home and the bank will probably take it because they want to move this damaged house.
What just happened to the average values in the neighborhood? Remember, 2 homes sold at $150,000 and now, this third one sold for $100,000. The AVERAGE home value in the area has declined to $133,000. So, you, the neighbor, have now lost another $10,000 in the precious equity you have worked so hard for.
This is a vicious cycle and we all can help stop the downfall. Call 911 and report the stripping/damaging of the property. It is against the law. As an agent, if you're working on a short sale and suspect it will go into foreclosure before the bank approves your contract, tell the homeowners what the law is. Report any vandalism post-foreclosure - you'd be surprised how much damage can be done by thieves taking $20 worth of copper.
If you have a foreclosure in your area, park your car in the driveway to help it look occupied. Realtors, put a small lamp in one of the front rooms and turn it on. Spend 50 cents on a lightbulb to help avoid vandalism of thousands of dollars. Clean up those flyers that are left at the doorstep and driveway. Ask the neighbors to be on the lookout. I actually got another listing simply because I introduced myself and ask the neighbor with 4 cars to please use the driveway and explained why.
These are just small steps, but we can ALL help stop the decreasing values.
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Specializing in Scottsdale, Cave Creek, Carefree and north/northeast Phoenix residential real estate. Helping YOU make smart, informed decisions whether buying or selling real estate in Arizona.
After finding the last 5 houses I bought on my own, I realized the realtors I worked with weren't listening to me. I was so frustrated - they were getting their commission and I did the work!!!! So, I got my license. I pride myself on truly listening to my clients - what are their NEEDS? What are their WANTS?
For instance, one of my customers wanted to live on a street with a pretty name. I asked her what that meant. She said, "something nice, something I can be proud of." I searched for the size home they wanted in the area and discarded anything on a numbered street. I narrowed it down to 5 on "pretty" street names and they put contracts in on 3 of the 5!!!!! The first one was accepted and they are happily living on Misty Willow.
Then, there's my customer with two sets of twins - one set of girls and one set of boys. He ABSOLUTELY had to have 4 bathrooms - the boys didn't mind sharing but there was no way the girls were. After laughing about the image in my mind, the first search option I input to my MLS was # of bathrooms, then the school district. I still chuckle with this client every time I talk with him.
While those may sound minor to you, these are just two examples of how I really listened to clients to make sure they were happy with their purchases. One was a want, one a need.
Let me know what your wants and needs are and I'll help you locate the perfect home to purchase.
Juli Vosmik
480-710-0739
One of my clients recently told me the square footage on her home was no where near what the agent who originally sold her home had told her. I asked her if she had gotten a copy of the appraisal from the mortgage company. She said she had but hadn't really looked at it. But, now she's upset with her old realtor.
We all need to take responsibility for the biggest purchase of our lives and I ALWAYS pull every public record available along with a Comparative Market Analysis (CMA) before I meet with my buyers to actually write a contract. The more I can present hard facts, the more my clients can make informed decisions. Going the extra steps keeps "surprises" and, later, buyers remorse from lack of knowledge happening.
Go the extra mile - it makes for smart, informed decisions.
Juli Vosmik
480-710-0739
Your real estate agent in Scottsdale, Cave Creek, Carefree and north Phoenix - helping you make smart, informed real estate decisions.
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