Buying A Home
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Related, but the foreclosures will affect our price, right?

There are actually 2 foreclosures in our development and they are both priced around $15k less than ours. One is a very close comp to our house.

That is definitely going to affect our price, right? Should I set myself up for disappointment now?

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Re: Related, but the foreclosures will affect our price, right?

  • It will affect your appraisal if they close before you. It doesn't mean your won't sell or even get a good price, but it does throw a kink into things.

     

  • I think it depends on the condition of the foreclosures. A lot of times those houses are "as is" and don't come with appliances. If you can, I would see if your agent can take you to view the foreclosures so you know how close you are. Depending on what price range you're in, $15K might not be a lot if certain things are updated in your house that aren't in the others.
  • Not necessarily...we had a foreclosure settle down the street from us that was in rough shape. Our realtor told us that appraisers are not allowed to use distressed properties as comps when determining the value of your home.
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  • We had a foreclosure right next door, built by the same builder with our exact same floorplan and features. Ugh. It sold for almost nothing and I was very worried.

    It was a non-issue. We sold our house for nearly asking price and the house next door was not listed as one of the comps. 

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