Selling Price (bank Foreclosure)..
Q: Wondering about the effects of a (immediate next-door) neighbor's condo selling price (bank foreclosure) on my selling price. Several condos in my area have sold for about what I would hope to sell mine for. But the condo closest to me is being sold by the bank for $5000-$6000 less than all the others, and actually less than I paid for mine 5 years ago! Any ideas what effect(s) this will have on my selling price? Will the "comps" somehow show the sale price being low because of the foreclosure, or will I be screwed into people expecting the same price for mine? Floorplans are almost identical, and prices are low to mid 70s
A: Timing may be a problem here. If you offer your condo at a higher price than a substantially similar unit next door, its likely the lower price unit will sell first. You may want to wait unitl it sells before advertising yours. In all cases I know, comps are based on arms-length transactions. A forclosure is a special circumstance affecting only that unit. Any RE agent or appraiser should compensate for the special circumstances affecting your neighbor's condo in evaluating the market value of yours.