impact on house values (sales, foreclosure, selling a home)

[slimjen]

Can anyone answer this question? I am one of several in a development that are selling a home. The selling prices range from 219,900 to 235,000. Recent sales range from 222,000-235,000. We just learned a seller accepted a contract for 199,900. We were told this property may be going into forecloser and that's the reason for the low price. How would this impact the remaining sales? We would have to lower our price because of this even though there were recent houses sold higher?

Thank you

[sheldonteam]

The appraiser will take the sales in the last few months and use these as comparibles. If the property is not in foreclosure he will take it as a comp sale. If it were a home that had been foreclosed than he could make an adjustment because it would not be arms lenght sale. There are many considerations that the appraiser will consider. Every house in the neighborhood is probable different and that will justify eachs price. Hopefully your Realtor can show the appraiser comps that will justify your price.

[slimjen]

thank you. This is encouraging for those of us left still standing. I have a buyer and hope to get through the appraisal process before the lower one closes.
Thanks again

[subwife87]

We were in a similar situation back in October (different state however).....we (myself and my relator) just cringed everytime someone accepted a lower price on a house because for us it did have an impact...once buyers saw homes were actually closing at lower prices then they wanted in on that too so we'd have to lower our prices. While we did well selling our home, definately came out ahead, in the end to sell we had to take considerably less than the true value of our home.

[sheldonteam]

If the other property has not closed than the appraiser should not use that as a comp, and if yours sells higher it should help other sellers when theres closes