How Foreclosure Listings and Sales Affect Your Scottsdale Home Value

By • January 7th, 2010

How Do Foreclosure Listing Vs Sold Foreclosures Change My Home Value?

When it comes to the current market in Scottsdale, Az. or the entire country for that matter, it is getting harder and harder to find a neighborhood, that has not been affected by foreclosures. When it comes to foreclosures, it does make a difference, how many foreclosures there are in your neighborhood, and how many have sold, in your neighborhood. There are also Short Sales, and Bank Owned, properties that have an affect of your homes value, in Scottsdale and the entire valley. In order to understand things better, it helps to understand the terminology first.

First, lets talk about Short Sales, and what they are. A short sale in the most basic sense, is when a seller is selling a property for less money than is owed to the bank for that property. The main part of the sale is basically the same as any sale. The main difference in a short sale, is that the bank is the one to approve the amount and terms for the sale, and not the seller who has been making the payments to the bank. The seller needs to sign all the contracts, as in a normal sale, with the addition of a few extra forms, that have to do with the short sale. The bank will then go through their process, and in the end, they will approve the short sale, or they will respond with the equivalent of a counter offer. If the counter offer is acceptable to all parties, then the sale is completed. If you have any further questions about a short sale, you can visit the following link, Short Sale Info.

Now, let’s talk about Pre-Foreclosure sales. This is basically where the seller has been notified by the bank that they have started foreclosure proceedings. There will be a date set for the foreclosure sale in the tax records. The home owner in this case will be trying to sell the home to satisfy the lender, prior to the lender foreclosing on the property. In the case of a pre-foreclosure sale, the amount that the seller is trying to sell the home for, will need to be a market value price, or the home will never sell, and the bank will foreclose. If the seller owes more on the home than the home is worth, then they should be doing a short sale, and not wasting their time with a pre foreclosure sale listing.

Ok, now we can talk about Bank Owned Property for sale. When you come across a sign, or listing that states that it is bank owned. This is when the bank has already foreclosed on the property, and the property did not sell at the foreclosure sale, and the bank has taken possession of the property. In a bank owned sale, the bank will not fix anything, or give any warranties as to the condition of the property. They will not provide you with any information as to the previous owner, and you are basically getting what you see, and what you don’t see. In the case of a bank owned property, you may be getting more than you can see with the property. If the previous owner was of a mind to, they could have damaged the property in a way that is not ready seen by the buyer, and will not show up until after the new owner has closed and moved in to the home. Always have complete inspections done on the property, before you become the owner of all the problems that come with the home.

Now that we have an understanding of terminology, we can proceed with how all this affect the bottom line of your homes value in today’s Scottsdale real estate market. When we look at the local MLS for the city of Scottsdale, AZ. there are currently 3,102 Active listings. When you look at the active listing number, 1,001 of the 3,102 are homes 1 million or more. The price range for all the listings is from 99K to 26 Million. When we break down the listings into pre-foreclosure, Short Sale, and Bank Owned, we see that there are about 33% of all the listings that fall into those areas.

To be specific, there are 219 Bank Owned active listings. The price range for those listings is from 99K to 6.5 Million. There are 32 of the 219, that are 1 Million dollars or more. There are 48 between 500K and 1 Million. When we talk about Short Sale listings, there are 647 active Short Sale listings. There are 55 that are 1 million or more. The top price short sale listing is 3.550 million. There are 176 listings that are 500K to 1 million. The overall price range for the Short Sale listings is 110K to 3.550 Million. There are 171 active listings that fall in the area of pre-foreclosure. The price range is from 119K to 3.5 Million. There are 17 that are 1 million or more. There are 38 that are 500K to 1 million.

In looking at the overall market, we see that ether are 33% of the active listings that fall into one of the three areas, pre-foreclosure, short sale, or bank owned. If we look at only the 1 million dollar or more market, we see that only 10% of that market is in one of the three areas. One could see by those numbers alone, that the million dollar priced market is not as affected by those areas, as the overall market. So it depends on what price range your home is in, as to how much its price has been affected.

When it comes to your actual property, and how it has been affected by the market, we need to consider many different things. Did you purchase your home within the last couple of years, when the market was peaking? Did you get a deal on the home when you purchased it, or did you pay full market value, at the time? Where your home is located, are there many homes that have fallen into one of the three areas, or has there been no sales in those areas? What is the condition of your home, in comparison to those that have sold in your area? All of these questions and more, are needed to be answered in order to determine how your homes value has been affected by everything that has happened in the Scottsdale real estate market.

When you find yourself wanting to determine what the value of your home is, in today’s Scottsdale real estate market, Contact Us, and we will be glad to give you real numbers, that apply to your home, and the ability for your home to be sold in today’s market. You can get a number from one of many different locations on the web, and most of them will be provided by a computer, or one of many other ways. When you contact us, you will be getting a Scottsdale real estate Brokers opinion, of the value of your Scottsdale home in today’s Scottsdale real estate market.

If you are looking for information to Buy Foreclosures, or Bank Owned properties, Contact Us, and we will be glad to help you understand exactly what you are getting, and how to get the best possible deal for you.

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