Sadie’s Take on Delaware Ohio

A house down the street just went through foreclsoure. How does that affect the value of my home? Tom, Ostrander

This is a fun question to anwer because it is one of those questions that differentiate those that sell real estate and those that teach real estate.

First, let us look at the traditional basis for the “value of your home”. In theory, your home’s value is based upon “arm length transactions” this would elminate reposessions, short sales, family sales, and other transactions in which one side of the transaction has an advantage over the other.

Why?

The basic concept is based upon the fair market system, when things are sold openly it is assumed that the true market value is reached. This is how a home’s “value” can change 20 percent or more over the span of a couple of years.

And the “theory” and “practice” would normally work well - however in today’s market the ruls are different.

How different?

When you consider the number of short-sales and reposessions on the market it would be listing suicide to ignore them. So it will have an impact on your ability to sell your home - today.

If you have your house on the market, you need to be kept up to date by your agent when it comes to what is on the market in your area and how your home compares to them.

Obviously, if the house down the street is the same size as your and in similar condition — but priced $20,000 less — why should they buy your home?

How much will it impact your home? That depends on where you live, how many repossessions in the area, and the overall market confidence.

To get the best evaluation give Toby a call at (740) 990-9748 or e-mail to get an updated value of your home.

Photograph by Nigel Patence and used via license of Stock.xchng

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