We have clients contact us all the time regarding foreclosures and only want to look at bank owned properties. When we ask them why they only want to look at foreclosures most clients say “because we want to get a good deal and that’s where all the good deals are”. We thought you mite like a little insight on how the banks that own these foreclosed properties figure out their listing price and how they sell these properties. The banks learned many years ago that the most effective way to sell a property is to list it with a realtor on the MLS or multiple listing service. All of the listing information that you see on the real estate websites on the internet is taken from the MLS. The advertising and exposure are second to none so this is the preferred method to sell foreclosures. The key words to remember are “ current market value”. The banks want current market value because that is what the home is worth in the current market in Las Vegas. The current market value is determined by recent sales in the community that the property is located in. A good experienced real estate agent will know how to find the current market value of any home that you are interested in. The tax role information available online that shows the last sales price has nothing to do with the current value. Appraisals done in the last 6 months of properties similar to the one you are looking at is a good starting point. The point we are making is this; just because a property is a foreclosure doesn’t mean it’s a bargain. Look at all the listings in the community, not just foreclosures. You will get a more realistic view of the true value.
Leave a Comment