Foreclosure and for-sale homes may decrease surrounding values - – Rockford’s News Leader

Foreclosure and for-sale homes may decrease surrounding values

WINNEBAGO COUNTY (WREX) - Illinois remains the state with the highest percentage of foreclosed homes in the nation.

While those numbers are leveling off, their effect on surrounding property values will continue.

Experts say foreclosed homes can appear run-down if not kept up by the bank.

This can stop buyers from purchasing other homes in that area.

A foreclosed home's lower selling point will also be included in the assessment value of near-by properties.

"What that sells for is going to be in consideration if you were going to decide to sell your home or for what they other homes are selling for currently," Real Estate Broker Aubra Palermo said. "The appraisers have to look at what they other homes are selling for whether they are foreclosed or traditional homes."

A way to keep your neighborhood from degrading is to first focus on your own yard and home.

Keeping your house updated will keep the value of your own home up, and it won't deter buyers from purchasing homes on your street.

The longer these foreclosed homes remain the more surrounding values can decline.

For foreclosed properties, experts say if a property looks like it is struggling, call the number on the foreclosure notice usually taped to the door.

Banks, like traditional sellers, want the home to look occupied to keep vandals out.

"I've had neighbors who will even mow the front yard of the neighboring house to try and keep up the neighborhood so it doesn't start a decline," Palermo said.

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