On the surface, it's an encouraging development, particularly in smaller cities given the huge glut
of unsold properties that have weighed on prices in recent years.
Review public records to see if the developer may be prone to
dumping unsold properties at auction, meaning that recently sold homes» values may drop.
Foreclosed homes and
other unsold properties can be picked up cheaply in many markets and need only minor renovations, such as new appliances and a new coat of paint.
The
lone unsold property does not have an elevator, and, Neifel said, it probably would have sold if it had one.
So, realized capital gains (the profits from the sale of property) are inflows, but unrealized capital gains (the gain in value
of unsold property) are not.
«However, there are situations where a veteran may be purchasing a home that is priced above the county loan limit for where the property is located, or they may have a portion of their entitlement tied to another,
unsold property,» says April Jones, Mortgage Operations Administration Manager at Regions Bank.
In the big scheme of things, if you are feeling uncomfortable after accepting an offer that is lower than your ideal price, remember that the flipside to it is
an unsold property.