Froclosures Quick Pays, Ect..

Started by IreneC • 7 replies • 1245 views

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IreneC (North Carolina)
Posts: 111

Posted:

As frustrating as the houseing market is, it seems that every month there is another forclosure, now it's quick pays.

In the last 6 months.. we have had 4 now with a 5th unit going this route. It is a concern.. here is the clincher..

The Presdent of the HOA spoke to me about the above. She says... " I know alot about real estate and no this doesn't affect our property values ". WHen challenged with what has been shown as fact the President goes ballistic... I know this.. everyone I have spoken too says it doesn't hurt our values..

Can please help me with this? Does anyone have any great articles on forclosure and the affect that has on property values?

hoatalk (California)
Posts: 603

Posted:

Foreclosures generally are sold for less than retail value. When a Realtor prices a home to list, a Buyer evaluates the community to make an offer or an Appraiser tries to determine fair market value, they all look at 'comps'. Comps are comparable recent sales (last 6 months normally). If there are a lot of homes being sold cheaply in your community, these will be the 'comps' for your home when it's valued. It doesn't matter why they were cheap (foreclosure, motivated seller, builder close outs, etc). As long as the homes are enough like yours, they can and will be used as comps.

So, yes, foreclosures can lower property values in a community if you have enough of them that they show as comps for current sales and appraisals.

Homes selling cheaply for any reason will lower the value of surrounding homes.

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BrianB (California)
Posts: 2,820

Posted:

Quote:

Posted By hoatalk on 05/31/2008 4:25 PM

Homes selling cheaply for any reason will lower the value of surrounding homes.

the bottom line right there. it doesn't matter WHY the home sold for the price it did, comps are based on the sales price. no one cares the reason.

IreneC (North Carolina)
Posts: 111

Posted:

WHY OH WHY WOULD THE PRESIDENT BE YAMMERING as she did in open forum a few meetings ago that a foreclosure does not affect the values of your home?

IreneC (North Carolina)
Posts: 111

Posted:

WHY OH WHY WOULD THE PRESIDENT BE YAMMERING as she did in open forum a few meetings ago that a foreclosure does not affect the values of your home?

DwightT (Idaho)
Posts: 664

Posted:

Quote:

Posted By IreneC on 06/01/2008 12:04 AM
WHY OH WHY WOULD THE PRESIDENT BE YAMMERING as she did in open forum a few meetings ago that a foreclosure does not affect the values of your home?

A foreclosure doesn't have much affect. Many (or even a few) foreclosures will. Maybe she just needs someone to point out how many foreclosures are taking place in the neighborhood.

On the other hand, even if there are several foreclosures going on, what exactly is the HOA supposed to do about it?

IreneC (North Carolina)
Posts: 111

Posted:

THe HOA can't do anything about it. It is just that the President has said it several times being correct each time. These statements were both made in open forum to the home owners concerning the currently foreclosures. We as a board made it cleat that this is her opinion only and is not not shared by the HOA.

Misinformed and ignorant is what our president and I at least do not want her making statements like that during our meetings that could be misinterpreted as a statement from the board.

IreneC (North Carolina)
Posts: 111

Posted:

THe HOA can't do anything about it. It is just that the President has said it several times being correct each time. These statements were both made in open forum to the home owners concerning the currently foreclosures. We as a board made it cleat that this is her opinion only and is not not shared by the HOA.

Misinformed and ignorant is what our president is and I at least do not want her making statements like that during our meetings that could be misinterpreted as a statement from the board.

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