Bank owned foreclosures prove to be best deals for buyers and investors in most areas of town, however, they are forcing resale home listings to be competitively priced. The reality for sellers in our current market is that foreclosures are creating comparable sales that appraisers cannot exclude.
My comparative market analysis was based on sold properties from the Multiple Listing Service since April 1, 2008. The following is a breakdown of average sold price per square foot in each area:
- South Meadows (Double Diamond, Damonte Ranch): Foreclosures $142/sf. Resales $164/sf
- Northwest Reno: Foreclosures $149/sf. Resales $157/sf
- Spanish Springs West: Foreclosures $134/sf. Resales $144/sf
- Spanish Springs East: Foreclosures $128/sf. Resales $142/sf
- Stead: Foreclosures $110/sf. Resales $113/sf
- Cold Springs: Foreclosures $105.00/sf. Resales $124.00/sf
For example in Double Diamond, a bank owned 2000 square foot home would be priced at $284,000 and the same resale listing would be $324,000. Although foreclosures may be a great deal as far as price, one thing to remember is that, in most cases, they are sold “as is” with no repairs.
I run the original “Foreclosure Home Tour” which is an afternoon bus tour of pre-screened foreclosed homes. To join the next tour or view the upcoming schedule of tours or for the latest information regarding foreclosures, please visit my website at www.renoforeclosureexperts.com.