Question:
“We just saw online that the house at [address deleted] a few doors from our rental is for sale and we’re concerned about the low price. It’s listed for only $250,000 and hasn’t sold. Is that correct?”
Answer:
Yes and no.
Yes, the price is correct.
No, it’s not for sale now. It’s a short sale that’s been in escrow for months.
(I won’t get on my soapbox again to vent about how several major websites purposely show homes for sale when they’re no longer for sale!)
Given that the average price in your neighborhood is over $100,000 higher, either the house is in horrible disrepair or the agent underpriced it so they could get a quick offer and run it by the bank. The latter is not a good approach, but some agents do that.
Either way, it’s not indicative of the value of your rental house.
On the other hand, if you sell, there’s a small chance it could impact the appraisal. But a GOOD appraiser will use 3-4 comparable sold homes, adjust for the poor condition of the other home (if applicable) and it being a short sale. Ideally, the appraiser will avoid using distress sales in his/her appraisal.
