Foreclosures In My Neighborhood – How Do They Affect My Value?
Posted by Paul Gonzales | Leave A Comment »
Foreclosed properties and “short sales” are certainly in the news today. We are all aware that they exist in every community right now including our own neighborhoods. Properties that have been taken back by a bank or lender and held on their books are known as “real estate owned” or REOs. For both regulatory and business reasons they must work to sell them as soon as they can and get the REOs off their ledgers. So-called short sales are where the private owner and the lender agree to sell the property for less than what is owed. In our current markets, this need to liquidate properties often forces the lender to sell at a loss. As seen in recent sales figures for many areas, this practice has at least the potential to drive market prices lower in some areas.
OK – So how can the sale of a nearby foreclosure or short-sale affect me?
Any individual home sale in the area is only one statistic, not the entire local market. In fact, a common misperception is that the lowest recent home sale “sets the price” for similar properties around it. Not so. Understanding just a couple of basics about how a professional appraiser determines value can illustrate the impact that recent nearby sales have on your home’s value.
Appraisers are required to identify recent sales of properties that are similar and near in proximity to the home being appraised; these other sales are called comparable sales, or “comps“. There are extensive rules and formulas that they use to accomplish all that but those are the general criteria that they seek. After adjusting the sales prices for considerations such as age, size, amenities, quality and condition (among many other issues) the appraiser then has a finely-tuned range of prices that he or she will use to determine the value of the subject property being appraised. While not impossible, it is rare that the final value ascertained will be equal to the lowest comparable sales price (REO, short-sale or otherwise). Most commonly, the final value will be somewhere within the range of prices analyzed.
Which brings us back to the topic of the sale of a nearby REO or “short“. If the lowest sales price in the pool of comps used by the appraiser is an REO and is also significantly lower than the rest of the comps in the pool, the appraiser has the latitude to comment on that aspect. Depending upon how solid the remaining sales comps are, the REO or short-sale could have only a minimal impact on the value of the subject property. It may thus represent only the low end of the value range for that particular market. On the other hand, if the majority of recent comps happen to consist of REOs and/or short sales, then they may well define that local market and collectively have a significant impact on the value of the subject property.
In the final analysis, the value of your property is determined by your local market and is usually defined by recent multiple sales. Regardless of whether comparable sales are private sales, short sales or REOs, the market “is what it is” at that point in time. What’s most important to remember is that for the vast majority of markets, value is not defined by any one single sales transaction!
for more information contact Paul Gonzales, Countywide Mortgage Lending (760) 746-7388 or paulforloans@aol.com
Related Posts: San Diego
1st Quarter 2010 San Diego Home Sales – Get the Facts
Posted by Diane White | Leave A Comment »
The number of sales for the 1st Quarter 2010 has declined compared to 1st Quarter 2009, however, prices have increased.
According to Sandicor/MLS statistics some interesting facts about the first three months of this year for home prices under $10 million:
-
6,994 Sold Listings – 2009 had 7,238 Sold Listings
- Average Sales Price $400,125 – 2009 was $347,769 Average Sales Price
- Average Price per Sq.Ft. $235.62 – 2009 at $209.25 SP/SF
- Days on the market is about the same 67 vs. 65
Bank owned (REO) properties are still the lowest price per square feet:
- 1,901 REO Sales – $191.08 price per sq.ft. (SP/SqFt)
- 1,747 Short Sales – $204.50 SP/Sq.Ft
- 3,156 Regular Sales – $257.21 SP/Sq.Ft
Current Activity:
- 9,180 Active Listings – 2,193 are Short Sales – 764 are REO
- 10,450 are in the Pending Sale Status
- Sales Price to Listing Price is still high at 99% – 101% for REO Sales
Homes over $10 million sales are much slower:
- 45 Active Listings – 1 Pending – 1 Sold
- Average days on Market are 205
Please let me know if you would like information on specific areas or price ranges in San Diego. Reminder – to be eligible for up to $8,000 federal tax credit, you must be in escrow by April 30th! Plus there is now a California state tax credit up to $10,000. Ask for details.
![sunset-banner-v2[1]](http://pictureperfectsandiego.com/files/2010/04/sunset-banner-v212.jpg)
Related Posts: Area Information, Area Statistics, Foreclosures, Market Trends, Real Estate News, San Diego, Short Sales, homes for sale, tax credit
Beware of Distress Sale Dangers
Posted by Rachel LaMar, J.D. | Leave A Comment »
Are you facing a foreclosure or thinking about short selling your home? If so, there are several things about which you NEED to be aware before making any decisions. To learn more please visit http://www.rachellamarrealestate.com/blog/?p=554.
Related Posts: Foreclosures, Short Sales, foreclosure options, rachel lamar
Jeff Cole-Featured Agent Spotlight By Foreclosure.com
Posted by Jeff Cole | Currently 2 Comments »
Agent Spotlight: JEFF COLE, REO SPECIALIST
For Jeff Cole, what started as a passion for real estate investment is now a hugely successful — and still growing — real estate business.Jeff started as an investor in 1984 and became a full-time agent in 1995. He has spent the last 15 years fine-tuning his skills, being a top agent at both Prudential and Coldwell Banker and finally joining his latest venture in 2006 at Windermere Exclusive Properties in San Diego County.With an average DOM of 30 days, BPO accuracy of 99.8 percent to sales price and an impressive volume of $166.65 million, Jeff is managing just fine in today’s tough economic climate.”We have been busier in this market than many agents I believe mostly because I understand well the business of real estate and have an uncanny sense to see opportunity in every market,” says Jeff.
Jeff’s business is currently about 60 percent REO and 40 percent regular resale. He opened his REO division in 2007 in anticipation of the current housing market situation. Since then, Jeff has been the top Windermere Agent in San Diego County every single year. He has also received the “Five-Star Best in Client Satisfaction” award for those same three years. How did he manage it?Jeff puts it simply: “I love to help people reach their goals.”Jeff’s quality customer service includes Web-optimized listings on more than 40 major Web sites within 24 hours and include premium photography. He also has a “less than two hours” call return policy that clients love.
His stellar customer service record is enhanced by a solid list of credentials that include both the Certified Foreclosure Agent and Certified Short Sale Agent designations from Agent University.”I feel strongly that continued education is the key to staying ahead in this business and Agent University has useful courses,” Jeff tells us. “It gives me one more selling advantage over other agents and helps keep the saw sharp.”His profile on Foreclosure.com has also helped increase his market exposure.”Sharon Johnson with Foreclosure.com has been very helpful setting up my profile and making suggestions to grow my online exposure,” says Jeff. “Foreclosure.com is a useful tool to get my name in front of the distressed property consumer.”
With quality customer service skills and the education to fine-tune his business, it’s a small wonder that Jeff excels in this or any other market. He truly sets an example for the rest of us.
Great job, Jeff!
Related Posts: Agent Services, Awards and Recognitions, Education, Join Windermere, Real Estate News, Windermere Agents
Why NOW May be the Best Time to Sell Your Home
Posted by Rachel LaMar, J.D. | Currently 4 Comments »
Happy New Year! I wanted to discuss an important issue that could effect buyers and sellers this year. There have been many articles out there lately about what will happen to the housing market in 2010, and many contradict each other. Some say the market will stabilize and start to climb, others that the bottom is not even in sight yet. So who do you believe?
There are three critical factors that will play a role in the state of the market and how it will fare this year. But even more importantly, if these factors combine in several different ways it could make it more difficult to sell a home in the latter part of the year.
If you are thinking of selling your home this year you may want to consider doing so now. To find out why please read my latest blog by clicking the pencil below or by visiting http://www.rachellamarrealestate.com/blog/?p=317.
Related Posts: Buyers, Financial news, Foreclosures, Great Real Estate Deals, Interest Rates, Real Estate News, San Diego, Sellers, homes for sale, rachel lamar, tax credit
