Real Estate

Gina Rascati, appraiser, Residential Appraisal Specialists, Wellington

Foreclosures in your neighborhood will affect your property values, but there are a few things you can do to mitigate the effects.

Lenders want to sell the homes they had to foreclosure, adding to the number of homes that are already for sale in a neighborhood. The lender is typically well educated in disposal of real estate and wants to sell quickly, so will price the property accordingly. That may mean a foreclosed property's low sale price will force down values of neighboring properties.

In addition, foreclosed homes are often in poor shape, creating neighborhood eyesores or other undesirable situations. The bottom line is that the increase in supply and decrease in demand results in lower values for all the competing properties.

Here's what you can do about it: First, contact the code compliance department of your city. This is the government entity that can cite the owner for violations such as unmown yards, peeling paint and trash piles. These citations can result in liens on the property, a very powerful motivator to get a property cleaned up, especially to a lender trying to sell the property.

Homeowners who are about to lose their property through foreclosure are less motivated. Neighbors who know the effect of the "broken window syndrome" (how a broken window can lead to other neighborhood neglect) may want to take matters into their own hands and mow the lawn or do other basic maintenance. Properties that are in good shape, even if they're in foreclosure, will have less effect on neighboring property values than run-down homes.

Finally, consider buying the home yourself. If the home is in your neighborhood it will be easy to make repairs and there's a good chance you will be able to pick it up for less than market value. Smart investors buy low and increase their investments with sweat equity.

Residential Appraisal Specialists, Inc. and President, Gina Rascati, SRA are proud to announce the tenth year anniversary of the company.  Whether you are searching for an expert in waterfront homes, vacant properties, horse farms, acreage, vacant land, foreclosures, REO's, short sale analysis, asset management, government appraisals, estate transfers, lender sales, FNMA and USPAP compliancy, equestrian estates, intracoatal properties, ocean front properties, Belle Glade, Loxahatchee, Pahokee, Royal Palm Beach, Wellington or West Palm Beach, exerienced asset manager, real estate manager, disposal of residential real estate, due diligence experience, loan buyouts, etc.