Can neighbor’s property affect your Camel IN home value?

Is the house selling near you affecting your home value in Camel ?

foreclosure houses

When it comes to real estate in Camel, different factors can affect the value of your home. One component can be the condition of your neighbor’s property. The prices of homes selling near you can have a big impact on your home’s market value. It’s important to know how these factors can influence the value of your home.

Camel IN Comps”

Comparable properties – or “comps” as they’re sometimes called – are recently sold properties with similar features; including size, location, and amenities. They are used as a benchmark by appraisers and real estate agents to determine the fair market value of your home. Consequently, the selling price of homes nearby influence how much buyers are willing to offer for yours.

For example, let’s say you have a three-bedroom, two-bath home, that you list for $250,000. If similar homes nearby have recently sold for $150,000, potential buyers will likely wonder why your asking price is so much higher. Does your home truly have exceptional features making it worth the additional $100,000? If not, this could make finding a buyer more difficult. So, another consideration would be the true worth of your home. This is often done by an appraisal.

Appraisal Value of Camel Homes

A home appraisal is an unbiased estimate of the true (or fair market) value of what a home is worth. Loan approvals rely on the appraised value of a home. This means that most lenders won’t issue a loan for more than the appraised amount. If this amount is less than the loan amount, an adjustment must be made. The seller will need to lower the price, or the buyer will need to make up the difference. Sometimes the seller and buyer compromise regarding the difference.

In addition, the bank will not approve loans if the appraiser determines that the home has certain structural issues. These issues will need to be addressed before moving forward with the sale of the home. This is often at the seller’s expense. As stated earlier, appraisers evaluate a property based on comp sales. Sometimes adjustments are made based on improvements done to the home. There are times when sellers do not make improvement or maintain their property. This leads to further devaluation of neighborhoods and possible foreclosures.

Foreclosures and Short Sales in Camel IN

Foreclosures (also known as repossessions) occur when a lender takes possession of a home due to the homeowner’s failure to meet the terms of their mortgage. Oftentimes, the property is sold to pay off the loan. If your neighborhood has a lot of foreclosed homes, your property value can take a hit. Foreclosures and short sales tend to sell at lower prices, thus diminishing the overall average sale price of the neighborhood.

These are some of the factors that can influence the value of your home. One of the most important are the comparable homes in your neighborhood. Be sure to check with your agent to make sure your value is on target before putting it on the market.

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