How Does My Neighbor’s Short Sale Affect My Home’s Value?

[GCJim]

I agree - a sale next door may be important, but it's only one sale. If it really did sell well below market, an agent or an appraiser shouldn't give it too much consideration. The agent needs to consider all similar listings and recent sales in the area when setting your asking price.

Basically what Lloyd said. A short sale is not considered an 'arms-length' sale, but is 'distressed'. If most or all of the sales in your immediate neighborhood are short sales / distressed sales, then I'm afraid that these are the current market. If not, if short / distressed sales are a small percentage, these may put downward pricing pressure on the area market, but generally do not 'define' the market.

If it were my house in a slow market, I would try to price just below the current market for your house's type / style / features / amenities ---- try to stay ahead of the curve for a faster sale. (I have recent stories of 3 simultaneous offers on a house within the first week, in a similar situation, in a slow market, with the eventual buyer actually bidding slightly higher than the list / asking price.) Good luck....