How do REOs, Short Sales, and Foreclosures Affect Sales?

The question nowadays from both buyers and sellers is how do REOs, short sales, and foreclosures affect sales? Today REOs, short sales, and foreclosures dictate a number of variables with the sale and price of your home including the price percentage increase or decrease, or valuation, of your home or property to the days on market, or how long it takes your home to go from listing to a sale. With that being said we are going to take a look at how homes in the Chattanooga home market on average are selling to see how REOs, short sales, and foreclosures will affect you in the purchasing of a new home or the selling of your property.
Let us take a moment to define the three terms we have here: REOs, short sales, and foreclosures.

1: REO: this is a term defined as “real estate owned”. This property is defined as being a class of property owned by an institution. The REO can be owned by a bank, government agency, or a government loan insurer. This property usually transfers ownership to one of the three after an unsuccessful attempted sale at an auction in which the property is listed with a real estate agent or broker to market, list, and sale the home on behalf of the institution.

2: Short sale: this is a term widely understood as a “pre-foreclosure sale”. This property is being offered by the mortgage borrower, whom is behind on payments or has an agreement with the bank to sale the property, before the mortgage borrower defaults on the terms of their mortgage to the mortgage lender, or lienholder. Most short sales have not only the mortgage borrower, or original home purchaser, that need to agree on the purchase price, but also the mortgage lender, or mortgagee, needs to agree on the terms and price of the sale.

3: Foreclosures: this is a term understood in general terms to be “a home repossession sale”. The possession of this property is taken by the mortgage lender, or lienholder, and the mortgage borrower is no longer in possession of the property or mortgage. Full possession of the property has been awarded to the mortgage lender by this point through all legal means. This type of property is usually purchased with the understanding minor work and fixtures will need repaired.

Now that we have defined each type of property, REOs, short sales, and foreclosures, we will move to how these properties affect our current market in the Chattanooga area.

From the chart above we can see that from 2012 to our current to date statistics in 2014 that overall sales have been on the move upward at a steady increase with fewer and fewer of those homes sold being REOs, short sales, and foreclosures within the same time period. Take 2012 for instance with 4904 homes overall being sold within our MLS and 1489 of those being REOs, short sales, and foreclosures combined. If we take the same figures from 2014 to match them up we notice 5362 homes were sold with 830 of those being REOs, short sales, and foreclosures combined for a total of 13 percent less REOs, short sales, and foreclosures sold in just approximately 24 months.

Year Overall Home Sales REO/Short Sales/Foreclosures Percent of Overall Sales
2009 4016 1139 28%
2010 4519 1249 27%
2011 4246 1266 29%
2012 4904 1489 28%
2013 5417 1176 21%
2014 5362 830 15%

So what does this mean to you as a seller? Does this mean that there are less REOs, short sales, and foreclosures being sold or are there less REOs, short sales, and foreclosures available to market?

Below we see homes that may fall into the definition of REOs, short sales, and foreclosures.

In general the overall thought is that there happen to be fewer REOs, short sales, and foreclosures to sell which has driven some home values higher within the MLS as displayed on the chart below. The upward turn is due to a shortage of readily available REOs, short sales, and foreclosures properties listed at below market price throughout the MLS causing home values to decrease as more and more REOs, short sales, and foreclosures came upon the market.

Area YTD Sales Percentage 2013 Average 2014 Average Percent 2013 Days on Market 2014 Days on Market Percent Months
Area 1 Lookout Valley 3.3 $247,000 $220,000 -10.90% 109 124 13.7 5.6
Area 2 Downtown -5.40% $119,700 $132,600 10.80% 147 112 -24.10% 10.4
Area 3 City of East Ridge -8.90% $95,500 $97,000 1.60% 121 123 1.70% 8.3
Area 4 Brainerd – East Brainerd -.30% $135,000 $145,000 7.40% 128 135 5.60% 9.5
Area 5 Highway 58 -18.40% $87,750 $104,000 18.50% 117 138 17.60% 10
Area 12 Harrison 15.60% $133,250 $136,950 2.80% 129 123 -4.50% 8
Area 6 North Chattanooga -5.40% $195,000 $200,000 2.60% 124 130 5.20% 5.1
Area 7 Red Bank -8.60 $108,500 $112,000 3.20% 117 102 -12.40% 6.2
Area 8 Hixson 15.40% $160,000 $162,000 1.30% 109 123 12.60% 7.1
Area 9 Signal Mountain -5.30% $280,000 $290,500 3.80% 117 136 9.2
Area 10 Lookout Mountain 9.10% $318,000 $339,500 6.80% 151 147 -2.50% 15.7
Area 13 Soddy Daisy -6.30% $163,000 $165,700 1.70% 126 128 2.00% 7.8
Area 28 Sequatchie -7.80% $100,000 $119,900 11.90% 141 171 20.80% 14.3
Area 15 Hunter Road -5.50% $162,000 $155,000 -4.30% 119 116 -2.70% 4.8
Area 16 County Ooltewah -4.70% $214,500 $216,000 .70% 117 130 10.70% 7.3
Area 17 Snow Hill 9.30% $253,875 $235,000 -7.40% 136 142 4.40% 8.2
Area 18 Collegedale -26.50% $234,450 $231,000 -1.50% 168 118 -29.50% 10
Area 11 Catoosa County -6.20% $129,450 $127,500 -1.50% 118 125 6.30% 7.6
Area 19 Walker County -4.70% $85,000 $90,000 5.90% 112 126 13.10% 10.3
Area 20 Dade County 6.50% $93,500 $79,000 -15.50% 156 172 10.00% 15.4

If you would like more information about this area or any other area of Chattanooga, please contact me, Brandi Pearl Thompson, or visit my website

Brandi Pearl Thompson specializes in helping all people buy and sell homes within Catoosa County, Dade County, and Walker County in Georgia and Hamilton County, Marion County, Sequatchie County, Bradley County in Tennessee. Brandi Pearl Thompson services Chattanooga, Ooltewah, Hixson, Soddy Daisy, Red Bank, Harrison, Ringgold, Signal Mountain, Apison, and Collegedale. She can help you regardless of the type of home and price range, big or small…she sells them all.

If financing is an obstacle for you, Brandi Pearl typically has the solutions you are looking for and can offer creative financing alternatives. If you do not qualify for financing she will NOT turn you away and we will help you get positioned so that you CAN buy a home from us in the future. Brandi Pearl does not succeed until you succeed and are living in your new home.

Brandi Pearl Thompson has been licensed for eight years and has worked at RE/MAX Properties North and works at Keller Williams. Having relocated into the Greater Chattanooga area over 10 years ago, she now calls Chattanooga home.

The areas I serve are here:

Chattanooga Valley, Georgia, Chickamauga, Georgia, Indian Springs, Georgia, Lakeview, Georgia, Lookout Mountain, Georgia, Ringgold, Georgia, Rossville, Georgia, Trenton, Georgia, Kensington, Georgia, Rising Fawn, Georgia, Wildwood, Georgia, Fairview, Georgia, Fort Oglethorpe, Georgia, LaFayette, Georgia

Dunlap, Tennessee, Fairmount, Tennessee, Jasper, Tennessee, Kimball, Tennessee, Lakesite, Tennessee, Lookout Mountain, Tennessee, Monteagle, Tennessee, New Hope, Tennessee, Powells Crossroads, Tennessee, South Pittsburg, Tennessee, Walden, Tennessee, Whitwell, Tennessee, Apison, Tennessee, Bakewell, Tennessee, Birchwood, Tennessee, Falling Water, Tennessee, Haletown, Tennessee, Hixson, Tennessee, Lone Oak, Tennessee, Sale Creek, Tennessee, Orme, Tennessee, Ridgeside, Tennessee, Collegedale, Tennessee, Harrison, Tennessee, Ooltewah, Tennessee, Signal Mountain, Tennessee, East Brainerd, Tennessee, East Ridge, Tennessee, Middle Valley, Tennessee, Red Bank, Tennessee, Soddy-Daisy, Tennessee, Cleveland, Tennessee, Chattanooga, Tennessee

37341, 37343, 37350, 37351, 37363, 37377, 37379, 37402, 37403, 37404, 37405, 37406, 37407, 37408, 37409, 37410, 37411, 37412, 37415, 37416, 37419, 37421

Alton Park, Avondale, Brainerd, Bonny Oaks, Bushtown, Clifton Hills, East Brainerd, East Chattanooga, East Lake, Eastdale, Ferger Place, Fort Wood, Foxwood Heights, Glenwood, Highland Park, Hill City, Hixson, Highway 58, Lake Hills, Murray Hills, Jefferson Heights, Lookout Valley, Tiftonia, Wauhatchie, Lupton City, Missionary Ridge, North Chattanooga, Orchard Knob, Pineville, Ridgedale, Riverview, Rossville, Southside, Stuart Heights, Tyner, St. Elmo, Woodmore

Featured Property, October 19 Edition

Are you looking for a home in North Chattanooga? Take a look at the located at 800 Snow Street, which is within easy walking distance of parks, grocery stores, businesses, and several restaurants. If you want to cut down on how much you drive, this is a perfect location!


800 Snow St exterior


The home has been renovated, and you can see the attention to detail. Hardwood floors, custom cabinetry, and fresh paint are just a few of the updates that make this home beautiful — and ready to move into!


800 Snow St floors


800 Snow st kitchen


In addition to an interior that will become your quiet retreat from the busy world, you will love the large, shady backyard. It is completely fenced in, so children and pets can play safely. Not too many houses in the area include such spacious yards as this one.


800 Snow St backyard


If you’d like to see more, you’re in luck! Our buyer’s agent, Stevie, will be hosting an open house this Sunday, October 19, from 2-4pm. She would love to show you around. Or, feel free to contact us at 423-401-8388 to schedule a showing at your convenience.


Chattanooga Fall Homeowner’s checklist

Fall in Chattanooga The weather is perfect. There are piles of leaves everywhere, the sky is blue, you can order pumpkin anything in every restaurant, and of course football. Fall is here! It’s a good practice to do a few things around the house in the spring and in the fall because your to-do list doesn’t get too long and your home is ready for whatever mother nature has in store.

1. Clean the gutters — The Chattanooga area sees heavy rains in the fall, and throughout the winter. Spend an afternoon making sure your gutters are clean and your downspouts are clear of debris.
2. Check the roof — While you have the ladder out, check and make sure no shingles are loose, or if you man cleaning gutter shave a metal roof, that there’s no rust.
3. Paint — Look for areas of chipped paint, and touch up where needed.
4. Cover central air condition, and put away window units — Clean them thoroughly to be ready for next summer.
5. Rake, mulch, and straighten — Add a layer of mulch to any flower beds, rake leaves, and give the yard a general clean-up.
6. Store outdoor furniture — If there are removable cushions, store them, take down umbrellas, and put away empty flower pots.
7. Remove hoses — Drain spigots, coil hoses, and store them flat.
9. Chimney safety — Have a professional check chimneys and fireplaces and get ready for those chilly mornings.
10. Storm windows — Clean and either close or install storm windows to keep the wind out.

1. New Batteries — When the time changes (November 2 at 2:00am!) put new batteries in your smoke and carbon monoxide detectors and check to make sure they are functioning properly.
2. Heating systems — Change filters, clean vents, dust where necessary.
3. Clean the refrigerator coils — Extend the life of your fridge by cleaning the coils! In fact, you may want to clean all of your appliances, inside and out, and even pull them away from the walls to clean under and behind them.
4. Check the cabinets — Go through the kitchen and bathroom cabinets and discard outdated food and medicine. Restock as necessary.

#RocktheJob with Theresa Maddox

In the real estate industry, we often need to make referrals. Our clients need general contractors, roofers, painters, electricians and more. For clients selling their homes, one of the most important referrals we can make may be to someone who can help stage a home for sale.

We are always happy to tell people to call Theresa Maddox of Secrets2Staging, because Theresa is one of those rare people who understands what it means to #RocktheJob. She offers various levels of service, excellent advice, and always has a kind word.

If your home is on the market — or soon to be — give Theresa a call. You’ll be glad you did!

theresa maddox

#RocktheJob with Steven Disbrow

For business owners, technology can be a real problem. If you’re specialty is making fantastic cakes, you may not have the skills to build a website, and it can be hard to figure out if someone else has those skills, either!

Steven Disbrow sees lots of problems as the owner of Ego Systems, a local technology company. Steven says, ““Clients come to me with horror stories, and sometimes horrible web sites, and it is a pleasure to be able to help them.” 

It can be tough to find someone who you can trust with your business’ appearance online, and since Steven is such a person, we think he is a perfect example of what #RocktheJob is all about. But, he does even more than build solid, functioning, and attractive websites. He goes on to say,

The best part of my job is that, being self-employed (or, “gainfully unemployed” as I like to call it), I get to pursue activities that a normal 9 to 5 might not allow. For example, Ispellz logo’m an occasional actor with some local commercials (and a LOT of Shakespeare) under my belt. I’m an improvisational comedian (appearing monthly at Barking Legs Theatre as part of “Wide Open Floor”) and a producer with First Draft Productions

But, of course, it’s coding that pays the bills, and my latest endeavor in that area is mobile games for the iPhone. My first game Spellz, which my son Logan actually came up with, has become a
minor hit and I’m just a couple weeks away from releasing my second game, with a third and fourth already on the drawing board.”

You can keep up with all of Steven’s activities by following him on Twitter, @StevenDiz.

We would like to take this opportunity to say: Thank you for all you do, Steven. You #RocktheJob!

steven disbrow

#RocktheJob with Kevin Price at Blue Smoke Coffee

The love of a wonderful cup of coffee is just one reason we think Kevin Price is a perfect person to be featured here on #RocktheJob. Besides roasting beans to perfection, as the head roaster, CEO, and only employee at Blue Smoke Coffee, Kevin also supports conservation efforts, loves his dog, hikes in the Smokeys, and fosters a sense of community around his brand. You can follow Kevin’s adventures on the Blue Smoke Coffee Facebook Page.

Here’s what Kevin says about his work:

“I love my job because of the wonderful people who drink Blue Smoke. They tell me everyday how much they love my coffee — and that makes the extra work I go through to hand roast Blue Smoke, just a pound at a time, worth the effort. To have folks appreciate the quality of a handcrafted product is priceless to me.”

If you want to try Blue Smoke, you can purchase it at New Moon Gallery, The Hot Chocolatier, Pruett’s Signal Mountain Market, Hummingbird Pastaria, Root Kitchen, Grocery Bar, and Whole Foods, as well as ordering it directly from

Thank you, Kevin. You #RocktheJob!

Kevin Price, Blue Smoke