Bankruptcy Affecting Current Home Value

[Ann]

Hi everyone!

Now that I am going to sell my home I was wondering if the fact that my home was included in the chapter 7 and discharged almost 3 years ago will that affect the value of my home when it goes on the market? My husband says it will and I say it shouldn't. If we have continued to make all of our payments on time and was successful at getting a settlement for our second mortgage that gave us back our equity why should a bankruptcy affect the pricing? Please if anyone knows the answer please give me your input. Also, do I have to disclose to the buyer that my home was included in the bankruptcy? I don't want to have to tell every person who looks at the house about our past. Would it be best for me to when negotiations are under way or will they just find out in a title search? I don't want anyone backing out at the last minute because I wasn't upfront in the first place. Thanks everyone!

[despritfreya]

Bk has no impact on value. Value is what a willing seller will sell the property for and what a willing buyer will buy it for, nothing more, nothing less.

Des.

[justbroke]

Exactly. The sale price is always what a wiling buyer would pay a willing seller. It's not complex. Now finding out what price both the seller and buyer would agree upon, is another story! This is why we typically hire real estate agents to figure out or listing price and helping us sort through underbids (offers less than asking price).

[Ann]

Thanks, Des and Just Broke, for your input. It really made no sense why it would impact the price. It was not a foreclosure. I tried to explain that to my husband and now I can show him that others here agree with me! Thanks a lot!

[LadyInTheRed]

As far as disclosures, your real estate agent can tell you what disclosures are required in your state. I highly doubt your BK would be relevant to a buyer. It might come up in a title report, but won't be an issue as long as all existing liens are paid off in escrow. I certainly wouldn't disclose it to every person who looks at the house.

[Ann]

Thanks, Lady! I totally agree with you! Appreciate your input as well!