Knoxville, TN (PRWEB) October 25, 2012
The Holloway Group, the leading Knoxville real estate team at Gables & Gates, REALTORS recently educated clients on how neighborhood foreclosures effect the current value of nearby homes.
The question was proposed: What is the effect of neighborhood foreclosures on values of nearby Knoxville homes for sale as well as all Knoxville real estate? Coming out of the harshest national housing downturn many homeowners have witnessed, we have all heard about the multitude of foreclosures that have taken place all across the United States. Knoxville real estate, while not hit as bad as many areas in the U.S., was not completely immune. Many families have been impacted directly by the loss of their home, and the severe financial consequences that are introduced through the loss of what typically is their largest investment. Consequences such the extreme downgrading of their credit, loss of savings and retirement, and physical eviction.
But are there consequences to those families who live near those foreclosures? You might think yes, of course, if there are large quantities of homes being foreclosed in the same neighborhood then there will no doubt be loss of tax revenue and the surrounding homeowners or homeowners association will incur costs to remedy those visible maintenance issues that so often go hand in hand with abandoned/foreclosed properties.
However, for this discussion, the focus was the effect on homeowners living in close proximity to any Knoxville foreclosure and their ultimate loss through a depreciation in the value of their home. Researchers from the Center for Responsible Lending produced a report on this very subject. Using data from the federal government as well as Lender Processing Services, they were able to calculate the loss in value of homes within a 1/8 of a mile proximity to a foreclosed home.
Their findings show that in all neighborhoods, the loss in value of homes within the 1/8 mile proximity equals 7.2 percent. That is a 7.2 percent loss in the value of your home simply because you live close to someone who was foreclosed on. Taking into account homes that have been foreclosed as well as homes in the process of foreclosure, the researchers at the Center for Responsible Lending predict that $1.95 trillion in property values will ultimately be lost by those who live near foreclosed homes.
Troy Stavros, Broker and Partner with the Holloway Group at Gables & Gates, REALTORS stated, "As we tell our clients daily, there are many factors that effect a home's value. You must be sure to take them all into consideration when you are looking at Knoxville homes for sale to purchase or selling your personal Knoxville real estate."
ABOUT THE HOLLOWAY GROUP
The Holloway Group at Gables & Gates, REALTORS is committed to bringing the best possible experience to fruition for Knoxville home buyers and sellers. At the Holloway Group we don't believe average is good enough for our clients. At the forefront of the Holloway Group is experience. Our team was created to serve our clients even better with specialization and expertise. We know that individually we cannot be everything to everyone so we’ve come together as a group, bringing all of our different strengths, so you always work with the best. We pride ourselves on being ahead of the curve on technology and how it can serve our clients. When you are a client of the Holloway Group, you can expect to have our entire team of professionals working to fulfill your individual real estate goal. As a member of Leading Real Estate Companies of the World the Holloway Group and Gables & Gates, REALTORS can assist you with finding the most qualified real estate professional to suit your needs, anywhere in the world! Contact us today for assistance.