Rising REO Properties Affecting Horse Farms in Connecticut

Bank owned foreclosure has proven once more that it could victimize anyone, anytime and anyplace. The increasing number of REO properties in Connecticut included several horse farms. Horse properties have become a niche market in Connecticut’s housing market. However, the economic downturn and foreclosure crisis left horse properties grasping for anything in order to survive.

According to real estate agents, the high number of REO properties on market included several horse properties. They added that several horse farms in Greater Hartford area have been foreclosed while some are put on the market as short sale, which means that the sale price is less than the total mortgage owed by the current owner.

Adding to the problem facing owners of horse farms is the decline in property value. Most of these horse properties, which consist over 2 acres of land, have fallen in market value, albeit at a slower pace than other housing properties.

Real estate agents estimated that a horse farm may have an average value of between $300,000 to millions. However, the growing number of REO properties has pulled down prices 3 to 5 percent.

Prudential Connecticut Realty agent Kevin Green noted that to begin with, there is a limited number of buyers for horse farms and with the growing recession and foreclosure crisis, demand for horse properties has even whittled down.

He added that horse properties on the market for sale are not being sold as quickly as their owners hope to. Agents said that there are more horse properties available today than any other time in the housing market in Connecticut.

Meanwhile, real estate agents said that several factors influence the salability of a horse farm: price and location. However, unlike in traditional real estate, a horse farm that is located near an open land is more attractive to buyers.

RE/MAX Flagship agent Tammy Lucier said that land is a major criterion for selling a horse farm, followed by riding proximity without having to use a trailer for horses.

Meanwhile, Lucier pointed out that unemployment in Connecticut is greatly affecting owners of horse farms. She explained that there are more horse farms on REO properties listings because operating and maintaining horses are quite expensive.

And if horse owners lost their job, it could mean a death sentence to their properties especially if their farms have 10 horses or more. And compounding the problem is the reluctance of buyers to move away from the place where they have established a life surrounded by horses.

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