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Answers (7)
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1178
usually but you never know... prices are all over the board...
- Randy Hooker, "GoingForIt"
- Contributions:395
I don't know about the market in Sarasota, FL, Randy, but in the greater Phoenix market, none of what you said applies. We're seeing many short sale listings AND bank owned properties priced at or above current market values. There's no general rule regarding pricing in this market, which is why it's so important for a buyer to work with an experienced Realtor who can and will run the comps for any given property.
Also, most bank owned properties are NOT being purchased by investors - at least not in this market.
Also, most bank owned properties are NOT being purchased by investors - at least not in this market.
- Lisa Lucky, "Lisa Lucky"
- Contributions:976
Had a lender appraisal last week and the report shows they weighted all sales the same.
- Randy Schweitzer, "Randy Schweitzer"
- Contributions:100
Not sure what your question refers to! Are you referring to holding up the values in a neighborhood? If so, as you may know Short Sales generally are priced to meet the bank's (investors) appraisal and tend to be at the bottom of the comps. REO's (bank-owned) are based on bank appraisal, minus the cost of improvements, and factor in being empty for some period, etc.. Banks rely on BPO's (broker price opinions) and are at or below the lowest comp in the neighborhood. Why-because of being neglected properties, extent of damage, green pools, etc.. The market for these abandoned properties is generally investors who will only buy below the neighborhood comp values.
In speaking to our appraisers, they have to factor in both types of sales and there can be substantial differences in final value. That is very challenging for them unless an agent can bring in far more details and pictures of these sold properties. Sadly, a buyer's bank appraisal may be below a realistic market value if too many comps in the neighborhood were REO's.
Randy Schweitzer
Distressed Property Specialist
Coldwell Banker
Sarasota, FL
[contact info removed by moderator]
In speaking to our appraisers, they have to factor in both types of sales and there can be substantial differences in final value. That is very challenging for them unless an agent can bring in far more details and pictures of these sold properties. Sadly, a buyer's bank appraisal may be below a realistic market value if too many comps in the neighborhood were REO's.
Randy Schweitzer
Distressed Property Specialist
Coldwell Banker
Sarasota, FL
[contact info removed by moderator]
- Shawn Rogers, "Mister Rogers Homes"
- Contributions:912
When you say "help" what side of the market are you speaking of? Helping the "buyers" or the "sellers"?
- Pat Pribisko, "Pat Pribisko"
- Contributions:1426
I don't see a difference, as both can require a significant time period. The properties usually decline in condition over time. In the end, it's a matter of location, condition and the CMA for the target home and, in the end, the ultimate sale price.
- Randy Hooker, "GoingForIt"
- Contributions:395
That would depend on the actual sales price - no?
Does a short sale over a foreclosure help with property values?
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- 5.0/5.0
- (4 reviews)
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