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How does a foreclosure and a short sale affect the other town homes in a development of 8 townhomes?

The 6 town homes sold between $500,000 and $625,000 prior to 2009 (town homes were built at the end of 2003).  The most recent sales for the foreclosure and short sale were $375,000-$399,000.  Two town homes next to our property sold for $615,000 this past March and $609,000 this past December.  Both properties were similar to the town homes mentioned above.
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March 12 2013 - North-East Coconut Grove
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Answers (5)

You could definitely get a professional do an appraisal for you. However, most realtors in the state of FL can easily provide you with a free CMA (comparative market analysis). This will include not only the properties sold, but also properties currently on the market. Including both types of properties will give you a very important considering the FC and SS.. real sales will help you "dilute" the impact of the lower priced sold properties.

I hope this helps you and please do not hesitate to contact me if you need any further assistance.

Good luck!
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June 28 2013
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Thank you for your replies.  I should probably pay an appraiser to ensure I price the town house to meet mortgage requirements.
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March 13 2013
Unfortunately, the 6 sales prior to 2009 are essentially inconsequential when determining current value. As Andrey Mikhay said below, appraisers (and real estate agents) look at sales over the last 6 months, extending to one year if more data is needed.

The good news is that individuals value homes differently than appraisers. For example, surrounding parks and schools may be more important than the number of GFI plugs or sq. ft. a home has. So if you're going to sell your home in a desirable area, chances are the perceived value will still be there, as evidenced by neighboring property sales (assuming those properties are genuinely comparable to yours and that at least one of them sold AFTER the foreclosure or short sale).

That being said, potential non-cash buyers (the majority out there) will need to get an appraisal that supports the agreed upon contract price in order to obtain a mortgage.

In conclusion, I don't doubt you will get offers for your property if priced competitively with other neighborhood comps, but you may run into problems later on in the process when the buyers are trying to get their loan funded. Be sure and build in enough time for appraisal and loan approval when agreeing upon contract terms.
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March 13 2013
They will have a negative impact.
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March 13 2013
Hi there,
All recent sales affect the value of comparable properties nearby. Appraisers usually use sales in the last 6 month at the most. So, the question for you would be what has been sold in the last 6 month. If those foreclosure and SS sales fall into the account then they would affect negatively. But looks like they hold the value based on the recent sales you mentioned.
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March 13 2013
 
Related Questions
How does a foreclosure and a short sale affect the other town homes in a development of 8 townhomes?
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Latest answer by Ana Levy
June 28 2013 | 5 answers
  • Asked by orangemen
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  • March 12 2013
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