Month: May 2011

Uncategorized

“Home Alone” House For Sale! A Dream Marketing Opportunity!

Tricia Traugott

Trends in marketing real estate have  changed dramatically in recent years. The use of computer technology is a MUST for realtors marketing a house today.  This is the very reason we use every tool available to get our clients’ homes maximum exposure. Personally, we find using video and audio clips a lot of fun and gets our listings noticed. Our daughter in Boston emailed us the following interesting link!  Considering “Home Alone” was one of our favorite movies and Christmas traditions and we’re realtors, we  had to take a peek!  This is a cleverly done You Tube video and a great marketing opportunity any Realtor would love to add to their portfolio!

The “Home Alone” house looks like it could be in downtown Charlottesville around The University of Virginia neighborhoods or Park Street. Anyone interested in filming a movie in Charlottesville? Please do and then we can list it afterwards!!

Check it out! We think you’ll enjoy it!

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Short sale or foreclosure, Uncategorized

How Do Distressed Properties Impact Home Values?

Tricia Traugott

 I found this interesting article about how foreclosures and short sales affect values of resale homes.

The Impact of Distressed Properties on Neighboring Values
by THE KCM CREW on MAY 6, 2011 · 1 COMMENT
in FOR SELLERS,FORECLOSURES,PRICING

The banks are finally getting their foreclosure paperwork in order. They will start bringing larger numbers of distressed properties to market over the next six months. We must realize that this influx of discounted inventory will have an impact on the values of neighboring homes. How large an impact?

According to RealtyTrac a foreclosure sells for 59% of the value of a similar non-distressed property. Therefore, this foreclosure inventory will affect values in two ways:

1.) As Discounted Competition

Obviously, a segment of purchasers will prefer the discounted property based on price alone. Even if the distressed property is in need of substantial repair, the buyer is getting the property at a 41% discount. Price is determined by supply and demand. Distressed properties will eat up a portion of the demand for housing and that will put downward pressure on all values.

2.) As Comparable Sales on Your Appraisal

Even after you put your house into contract, this distressed inventory can still impact your transaction. Unless your purchaser is paying all cash, there will be an appraisal of your property by the bank who is giving the mortgage to your buyer to complete the purchase. Because of the volume of distressed properties selling in almost every market, banks are instructing appraisers to use these discounted sales in determining values of non-distressed sales. We can argue the logic of this some other time. At this point, we must simply be aware that this is taking place.

Bottom Line

Over the next several months, banks will be moving substantial numbers of foreclosures onto the market. This will impact values of other homes in the region. If you are considering selling, now might be the best time. You want to be sold and closed before these properties come to market and impact your price.