I recently saw a Trulia question from a buyer who was wondering why the price of a Los Gatos property was listed so low. There was typical answers about the locations, proximity to train tracks, school district….etc. But no one had considered the unlisted auctions, trustee sales, Notice of Default (NOD) and pre-foreclosures that were coming to the SAME street.
My point is that if you are searching for a home, your agent needs to be aware of what’s going on within the 2 mile radius of your search area. In the case of this buyers, we were able to find a property slated for auction on the SAME street to be sold within 2 weeks on October 12, 2010. The 2 mile radius is critical since when an appraiser prices your purchase for your loan, recently sold homes in this range can be selected as comps.
In fact, when we price properties for banks, we routinely search public records to see what has been sold within 2 mile radius of the subject which has similar type, size, style, age and functional utility. How would this buyer feel when they find out their neighbor’s home was sold at auction for $300k less that what they paid weeks after their purchase? We offer a FREE Foreclosure Search on our website that can help you identify potential markets where the banks are selling home as a discount.
We also review Foreclosure Activity in Los Gotos, San Jose, Campbell, Palo Alto, Mountain View, Morgan Hill, Sunnyvale and Santa Clara to help our local investor find the best markets for them to find distressed home.
Informed buyers make better clients. But before you decide your sell your home find out your home value. In most cases your home is worth more than what you.