Do Foreclosures and Short Sales in My Area Affect the Value of My Home?

Even with the housing market showing signs of a rebound, there are still remnants of the housing crash in the form of foreclosures and short sales throughout the country. If you see foreclosure signs popping up around your Jacksonville neighborhood, you might be wondering if and how this will affect the value of your own home.

 

The short answer is that yes, short sales and foreclosures in your area can affect the value of your home and the amount you could receive if you were to sell. There are different factors, however, that can affect how much these nearby distressed properties may affect you and the value of your home.

What Comparable Properties Will Your Jacksonville Appraiser Consider?

 

When determining the current market values of homes, Jacksonville appraisers consider the prices of comparable homes in the area. Most appraisers will try to find comparable real estate transactions in the area that are not foreclosures or short sales, when possible.

 

Sometimes, this is not possible. If the only homes for sale in your area that have similar features to yours are foreclosed or short sale properties, your Jacksonville Appraiser will have no choice but to use these figures when calculating your home’s value. They may, however, not give as much weight to these numbers.

 

Distressed Properties Create A Different Buyer Perception

 

If there are many foreclosed and short sale properties in your area, they can bring the value of your home down in more ways than just providing poor comparable figures for your appraiser. They can also change the way potential buyers view your neighborhood, and this can have a significant impact on market values.

 

If a foreclosed property sits vacant for many months, the home can become an eyesore in the neighborhood, with nobody maintaining it. It may even become vandalized. Sometimes the foreclosure or short sale signs alone are enough to make an impression on buyers, especially if there are many of these postings.

 

When calculating your home’s market value, Jacksonville appraisers do consider what buyers are willing to pay for properties in your area. Therefore, even if you have a home that is well-maintained, with brand new appliances and many other valuable features, the value of your home may be pulled down noticeably because of the way distressed properties have impacted your neighborhood.