The CMA will consider many factors to determine the value of the home you are looking at.
Supply and demand: If there are many other homes for sale in the neighborhood and If there is a lot of homes similar to the one you are looking at on the market, they are the baseline of the current market. We will look at lat years past sales of similar homes see if the trend is still declining or if the area is in recovery. If there is a small number of homes for sale it can result in competing bids that could send the price up. Or in this process we may find a better deal on a home that is not in foreclosure, but has a motivated seller that needs to sell quickly.
Location: Is the home located in a desirable neighborhood, with key services such as schools, doctors, and shopping nearby? Are there factors that make the neighborhood less desirable, such as environmental issues or traffic problems, lots of other foreclosures, surrounding homes in disrepair.
Size does matter : If you are buying the home for you to live in, consider if family is going to grow or, on the other hand if your family is downsizing is it to small or to large for your future needs. The most popular homes are 3 bedrooms and 2 baths, and increase in value faster than many others. A space for a home office is also becoming a big plus. Unless you are looking to "flip the house" this will be a long term commitment.
Condition: Since the homes that are in foreclosure mean the owner can't pay their mortgage, you have to expect they have not updated features or kept up with repairs. Does house have curb appeal and what will it cost to bring it back to a livable home. This is a key area where house flippers find their niche. A great profit can be made on repairing, and landscaping a neglected home.
Amenities: Popular features are low-maintenance siding, roofs and landscaping, granite counter tops, stainless steel appliances, laundry room, 2 car garage, energy star windows, good insulation.
Interest rates still influence home values: Today's low the interest rates increase what buyers can afford to pay. This is keeping real estate in the NH area very stable for most point NHAR 2007 compared to 2006 sales and found that house values fell only 1.1% but units sold fell by 12.5%.
The Economy: In today's perceived bad economy the number of buyers have declined, the likelihood of competing offers to drive up the price is small so this will also factor in the value of the home. Days On Market for NH rose to over 3 months.
Timing: You know that the home is in financial distress. You will need to move quickly, if you are pre approved for a mortgage, and have your finances in place a quick closing can result in a considerable savings. If you are considered a "ready and willing buyer" than you are in a better negotiating position.
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As professional real estate sales people who understand current market conditions, we can offer suggestions for buying foreclosures homes. We can analyze for you what properties have sold for in the neighborhood which will enable you to determine the best offering price for the home.
