About Some Fundamentals Found In Foreclosure Listings

 By: Philip Smith
It probably makes a great deal of sense to you that Foreclosure Listings and the Internet were a marriage made to last. After all, the contents of the database and the search features most commonly sought were easy to define, and in a way just replaced the manual systems used for a century, the old box file cards, and grew in all directions from there. Most of us love the flexibility of the many search features, but I don't know about you, I like to know how some of the obviously estimated data was derived.

Equity percentage for example, how is this calculated and why is it important to a potential investor in a foreclosure home? This percentage is the share of the property's worth that truly belongs to the owner, or the value of the property minus the amount of debt secured against it, expressed in percentage terms. Equity in one's home is built up as the mortgages are paid down, and by market price appreciation. Its importance in foreclosures listings is to an investor seeking the better bargains. If he chose to buy the foreclosure at the listed price less buying and selling costs, and sold on immediately at the market price, he has made a net profit equivalent to the equity percentage value. Most pre foreclosures with seller equity are likely to avoid the auction sale. The owner/borrower may be able to refinance and pay off the arrears either directly with the lender foreclosing or through a new lender, or sell the home at a price below fair market to an investor. This search information helps the investor pick his best leads. Remember it is only an estimate, and the buyer must search title to confirm the total loan information disclosed in the site is complete and correct.

Another detail provided on most reputable listing sites is "Assessed Value." How and where is this information obtained and can it be relied upon? Well, there is the Tax Assessed Value. That's the value established by local authorities for property tax calculation purposes. In some states that might be a standard % say 70%, of fair market value. There's Appraisal Value. A Licensed Property Appraiser uses an acceptable method to give a value estimate. The most common method for family homes is the Comparison Sales method, where the value is based on recent sales of similar properties in the same area, comparable not only in size, features and amenities but also in quality. The comparison sales prices must be adjusted to counter for the effect of distressed price selling. This information is required for traditional real estate buying purposes, but in the case of a foreclosure property must be tested, supplemented and analysed rigorously, for it is obvious that the "comps" may not be "fair market" value."

Online foreclosure listings are fundamental to making informed decisions, aren't they!
loading...
Author:
Artice Source: http://www.articlesphere.com
Article Tags: foreclosure listings

Related Articles in Real Estate Listings


People interested in the above article are also interested in the related articles listed below:

Paint: Painting ceilings and walls - especially on walls that catch direct daylight any time during the day, is important. Repair any nicks, scratches, cracks or holes in walls, prime and paint. Unless it's been done recently, painting ceilings is also an important upgrade that should not be overlooked - namely in kitchens where grease and stains from splattered food can collect.
When it comes time to sell a home, buyers sometimes get complacent and make the mistake of incorrectly assuming the matter is out of their hands entirely. Selling a house is not simply a matter of calling a real estate professional and handing the job off to them. There are many steps you can take to improve the curb appeal and encumber the unique and compelling character of your home.
If you are looking for a home in the MN MLS area then no doubt you have been overwhelmed by the amount of real estate listings that there are up on the web. The fact is that given how many suburbs are located in the area it can be easy for someone from out of town to get confused about what is the best choice for them. In fact, even those who live in the area often get confused trying to sort through the many different listings posted online.
loading...

More in Real Estate Listings

Excellent, Larry. Thank you for taking the new article directory technology and making it work to the max. I encourage everyone to keep contributing and contributing regularly. I can attest to the fact that this site is already a strong directory in a field of many. Kudos to Larry!

Matthew C. Keegan
The Article Writer

 

I find it a delight to use both as an author and a publisher. It is full of nice little surprises that make the whole process of writing, reading and publishing articles a complete delight. This is one that comes out tops and beats the rest hands down.

Eric Garner
Managing Director
ManageTrainLearn

 

I did a Google search and came across your site. It was exactly what I was looking for and was elated to find such a broad range of articles. As I am launching a free magazine in a small town in Florida, I wanted to be as resourceful as possible while still being able to provide some content that is interesting and well written. Your site has all the variables in the mix. Excellent Site hitting all the notes in the scale sort of speak.

Mo Montana
Florida, USA

Article Topics

 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.
ArabicBulgarianCatalanChinese (Simplified)Chinese (Traditional)CzechDanishDutchEnglishEstonianFinnishFrenchGermanGreekHaitian CreoleHebrewHindiHungarianIndonesianItalianJapaneseKoreanLatvianLithuanianNorwegianPersianPolishPortugueseRomanianRussianSlovakSlovenianSpanishSwedishThaiTurkishUkranianVietnamese