How will the foreclosures & short sales in my neighborhood impact me as a seller? Having several foreclosures and short sales in your neighborhood will impact you as a seller. They will bring the average value for the neighborhood down. Appraisers will consider those in reaching a value. You need to consider them also in pricing your home. Additionally, as a seller it is critical to realize who your competition is, whether the home is a foreclosure, a short sale or a regular home on the market. Keep in mind that the price you need or want, and the price the market will bear are two different things.
In today's market, buyers are looking for value. How quickly your property sells, will be directly related to its condition and how you price it. No amount of advertising or exposure will make it sell if your house is overpriced. Incentives offered such as interest rate buy down, closing cost assistance and throwing in non-realty items like a refrigerator or a flat screen tv will help, but the bottom line is pricing it right.
If your property is in move-in condition, buyers will pay more for it than a foreclosure that needs substantial repairs or an unsure short sale being sold "as is." However, buyers have to believe that your price is fair in comparison to those foreclosures and short sales for them to act. Many buyers will watch the market before they purchase and when they see an attractive home that is priced right, it will get their attention. This is why overpricing your home in this market is a serious mistake. Buyers will bypass your overpriced home and you will not capitalize on the initial period of the listing. And later on if you reduce the price, you would have lost out not only on those buyers but also on the momentum of a new listing. Sellers who price correctly from the start will do much better than those who overprice for the market.