By now most have heard what a short sale* is, know that it can sell for less than what is owed and possibly less than market value. So how does this effect your home value?
Well it doesn’t…unless it becomes a large part of the market sales in your area. Only then will it have to be considered in determining market value for your home. For example if there was maybe one or two short sale homes out of 10 sold in the last month, then the market valuation would not consider these sale types as good comparable** properties to your home. If 4 or 5 homes that sold in the last month were short sales that would represent a large share of the market and would weigh in on determining market value for your home.
I don’t know the formula, stats or information that an appraiser would use to determine how much influence a short sale would have on market value but I do know that most buyers today are very educated on the short sale and its process. Buyers know that a short sale can be long, drawn out and sometimes would rather pay for a home that is priced right and that can close within a reasonable amount of time.
If you are interested in a market snapshot*** of your home please give me a call.
Thinking about selling? See our Marketing Plan*Short Sale - A sale in which the lender agrees to take less than what is owed on the mortgage. more details
**Comparable - Defined as a home within your area that is similar in location, condition and ammenities.***Market Snap Short - Also known as a Comparative Market Analysis. A quick estimate of value without seeing the home, based soley on comparable properties. Posted by NMWelcomeHome Team Associates (505) 886-1432 on