So You Think You Know What a Foreclosure Looks Like, Huh?

I’ve talked about foreclosure properties in previous posts and how they are providing competition to non foreclosure properties.  It really is something you have to consider when pricing your home.  As appraisers we look at past sales and current active inventory.  If there are other properties for sale that are similar to yours and in good shape, typical buyers will consider them when looking at available homes, even though they are foreclosure properties.  The only saving grace for those selling non foreclosure homes is that banks are dragging their feet in the sales process and it takes forever for the transaction to occur.  Some people want to be in a home quicker.

I looked at a home recently that falls into this category, and I thought I would post some pictures to compare what it looks like compared to another “traditional” foreclosure which is in a run down condition that we are more accustomed to seeing.

new image of foreclosures

Below, I have also included another foreclosure, which we are more accustomed to seeing.  This home is actually better than some I have seen.  As I have said before, properties similar to the one above are starting to be more predominant than the one below.

What do you think about foreclosure homes competing with “normal” home sales.  Have you seen this in your market?  Are you seeing nicer foreclosures these days?

Comments

  1. Tom, you are right, you never know what the property will look like. I am still amazed at how much deferred maintenance some REO properties have while others are in excellent condition.

  2. It seems that most of the time foreclosure properties are in worse condition than non-foreclosures, so it’s no wonder that they tend to sell lower than traditional sales. I’ve seen some pretty rough properties out there. A house can certainly take a beating without proper care.

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