Do foreclosures affect my asking price?
Sunday, October 11th, 2009I have heard conflicting opinions on this. I am looking at selling my house and when I begin to pull comps of the houses sold in the area, how are foreclosures going to affect that price? I heard from a realestate agent that foreclosures are not suppose to affect active listings, while my bank (when I was going to refinance) used foreclosure listings when they pulled comps, which doesn’t seem exactly fair to me. Any info would be great. Thanks.
Your real estate agent is wrong. Foreclosures of similar properties in your area definitely affect your valuation and selling price. Stop to think about it. Why would a buyer pay YOUR asking price when he can go down the road and purchase a foreclosure for perhaps $20,000 less ?
Foreclosures which sell below the former (pre-foreclosure era) pricing definitely bring down the values of other properties in the area.