Foreclosures Seen Still Hitting Prices
Wall Street Journal
As a result, servicers increasingly are looking to arrange "short sales," in which homes are sold for less than their loan balances. ...

Properties that have been deemed "distressed"; either short-sales or banked-owned bring down the value of real estate. You might ask; why do I have to pay for other people's mistakes. Yes and no. Yes, your property loses value because the market became unnaturally inflated. No, you shouldn't have to pay for a bank's panic episode.

When buying and selling real estate; ask your Realtor to distinguish comparable's between distressed sales and non-distressed. This will improve your position.

For more information about this subject, contact me to discuss.