Foreclosure Question

**newhousebuilder123** · 03-25-2009, 06:26 AM

If a house in my neighborhood goes into foreclosure will that have a possible impact on what my house will sell for if it is currently on the market? Or does it also impact my appraised value of my house?

**newhousebuilder123** · 03-25-2009, 08:00 AM

Let me add....

I know it will not have any impact on my house until it is actually "closed/sold" to someone, but I assume when a house goes into foreclosure someone will come in and buy it back from the bank at a pretty low price. Then I assume that low price will then have a negative impact on my house.

Is that accurate?

**VancouverWa** · 03-25-2009, 10:48 AM

Hi Newhousebuilder,

It may or it may not -terrible answer.

An appraiser will use it and cite it as a distressed property if he can't find comparables that are not distressed. Normaly they wont use it, but this is not a normal market. It will only become an issue of course if the property does sale.

Someone asked in the office the other day what do we call a normal listing where the seller is not distressed and it's not bank owned? Someone shouted out "An over priced listing". It's not a normal market.

Best of Luck to you.