Pricing Distressed and Non Distressed Property

According to recent information  from the Realtors Confidence Index survey, price discounts for distressed property compared to non-distressed property is in the neighborhood of 15 to 20 percent.

This doesn’t necessarily mean that if a property is bank-owned, or subject to a short sale that you’ll get some killer low price. Banks and lenders trying to get their money back into the market and loaned out to borrowers who will actually pay are pretty savvy, and they’re looking at fair market value in most cases for their property.

Whether it’s already in the bank’s REO department, or yet to be foreclosed, and subject to a short sale, for “short pay”, don’t assume it’s going to be a bargain, unless there’s some serious repairs needed… hence the term “distressed”.

Call, text, or email me today!

I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.

Generally, non-distressed property is quite a different product entirely compared to distressed homes.  Many Realtors® have indicated that distressed properties are not meaningful comparables. That’s certainly true in Colorado.  Realtors® have also mentioned that they caution clients interested in non-distressed properties not to expect the same level of discount to market as is the case for distressed properties.

I don’t know why this is hard to grasp, but banks aren’t in the business of giving away the property they’ve secured as collateral for their loans, just because their borrowers can’t pay or they’ve taken them back through the foreclosure process. … unless of course, there’s some sort of major problem with the property.

Zachary Epps, GRI, ABR, REALTOR®, Eco-Broker®, full-time RE/MAX professional, and author of the Boulder Real Estate and Neighborhood Guide, The Boulder Condo Guide, and The Home Buyer’s Handbook.

Call, text, or email me today! … I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.

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