How do Foreclosures in Your Neighborhood Affect your Homes Value?
With the large number of foreclosures, odds are at least one home in your neighborhood has been foreclosed on. The question all homeowners want to know is “How does a foreclosure in the neighborhood affect my homes value?”
To help you understand how a foreclosure affects you, you need to understand how a Realtor determines the value of your home. To determine a homes value, realtors perform a “CMA” or comparative market analysis. A CMA compares your home with others in the neighborhood with similar square footage, number of bedrooms, lot size, etc… This comparison is done against all similar homes in your neighborhood, even the foreclosures.
One foreclosure in your neighborhood probably won’t affect home values too much (depending on how many other homes have sold), but multiple foreclosures can be bad news for you by lowering the value of your home. Unfortunately, the condition of the inside of the home is often not taken into consideration when performing this CMA (as unfair as it may seem…such is life!) – which is a good reason to always consult a realtor before doing any major updates to your home.
If you are concerned about how foreclosures in your neighborhood have affected your homes value – give me a call or email – I’d be happy to perform a FREE CMA for you to determine your homes current market value and give you a report on foreclosures in your neighborhood.