Ask the Realtor!

Welcome to Ask The Realtor created by Realtor, Jennifer Daywalt with RE/MAX Results Realty. Jennifer lives in this area, has been a Top Producing Realtor for the past 15 years and recipient of the Hall of Fame Award with RE/MAX. Questions and/or comments can be sent to Sellinghomesjenn@aol.com or check our my website, www.jenniferdaywalt.remax.com
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Would you explain the difference between a sheriffs sale and a foreclosure? 

When a bank is granted a foreclosure the property then goes to Sheriff Sale.  More than likely the bank will show up at the Sheriff Sale to bid on the property, obtain the property and then list it with a Realtor.  In rare cases the bank is outbid by an investor/buyer and does not obtain the property.  However the bank is only outbid if they allow that to happen as they want to regain their investment.

A tax sale takes precedence over a mortgage but these sales are very rare as again the bank wants to protect their investment, therefore they will pay the taxes in order to do so and avoid a tax sale.  If a bank does not show up to the Sheriff Sale to regain possession of the property be aware that there is good reason.

It is difficult, though not impossible to obtain Title Insurance for a property purchased at a Sheriff’s Sale however there will be many exceptions to that policy.  There are many horror stories that go along with the purchase of properties at Sheriff Sales such as the buyer being responsible for all liens on the property and also people coming forward after the sale to claim an interest in the property.  Most of the time these people were not properly notified of the sale and compensation is given to them so that the home can be resold with clear title.

Unless you are WELL versed in purchasing Sheriff Sale Properties I would advise against it. 

The Zillow Estimate for value of my home just went down by $10,000!  I have completed many renovations to my home.  It should have gone up.  Can I change this estimate?

Do not worry about your Zillow Estimate.  It means nothing during the sale of a property and rarely is a true evaluation regarding the value of your property.  When buyers begin quoting what a house is worth because of a Zillow Estimate I remind them that Zillow is not very accurate, they have not seen the home and in most cases not even the neighborhood.  The true value of your property lies in the comparables that have sold in your neighborhood.  An appraiser for the bank of the purchaser will establish true market value, not Zillow.

I want to purchase a property that is for sale.  The owner of that property purchased it about 2 years ago and now has it listed for much more than they bought it for.  How do I determine what to offer?  It cannot be worth the price they are asking.

The price paid two years ago does not truly matter.  The important issue will be today’s market value.  Have your Realtor show you the comparables of other homes in the same neighborhood that have recently sold. (6 months back, 12 months if the comparables are slim).  Then make a determination as to whether or not the listing price reflects what you are seeing.  Your Realtor should be able to provide guidance to you.

Keep in mind if you are obtaining a mortgage for the purchase of the property an appraisal will take place by the bank lending you the money.  The appraisers are very strict at this time and you are well protected in that aspect.  Be sure that there is an appraisal contingency attached to the Agreement of Sale.