No Duh! Foreclosure reduces a home's sale price by 27 percent on average
publication date: Aug 5, 2010
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author/source: Chris Prang
I came across this article today and it only confirms
what should be obvious to everyone. Foreclosed homes have a lower value
than comparable homes and in turn devalue the other homes around them.
Amazing it took economists at Harvard and MIT to figure this out! WOW, I don't even have college degree and I knew this a long time ago.
Here is the headline:
Amazing it took economists at Harvard and MIT to figure this out! WOW, I don't even have college degree and I knew this a long time ago.
Here is the headline:
Foreclosure reduces the eventual sale price of a home by an
average 27 percent, compared to the prices paid for similar properties
nearby. Those nearby homes, in turn, could see their own prices
depressed by 1 percent, if they happen to be within 250 feet of the
foreclosed property.
I have stated over and over again that if you are buying a foreclosed home, you should be paying 25% less than what regular resales are selling for. I've also stated that if you are buying a regular resale and even a new home that is comparable, you should be finding out what the foreclosed homes of like kind are selling for and pay as close to that price as possible.
I also want to submit to you that the nearby homes being depressed by only 1 percent, is probably way off the mark. I think 10% is more reasonable and likely over time.
Be sure to give serious thought when it comes to purchasing a home. And remember, never get a traditional mortgage from a secular lender who creates money out of thin air that God calls an "abomination."
Make it a GREAT day!
Chris Prang
I also want to submit to you that the nearby homes being depressed by only 1 percent, is probably way off the mark. I think 10% is more reasonable and likely over time.
Be sure to give serious thought when it comes to purchasing a home. And remember, never get a traditional mortgage from a secular lender who creates money out of thin air that God calls an "abomination."
Make it a GREAT day!
Chris Prang
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