Can a property appraiser compare subject property with other distressed sales?
February 6th, 2010 | by admin |In other words, can a property appraiser who’s appraising a home compare the subject to other comparables that have sold on short sale and or foreclosures.
i have no idea what the people above me are smoking, and if they appraise, they should quit.
the simple answer is no.
forclosures are sales of properties in which the mortgage company is trying to settle fvor under market values so they can just get out of the mortgage.
a true real estate appraiing teqnique is to use comparable sales which are sold at market rates,
the definition of market rates is that the buyer and seller close on a market value that is suitable to both parties. forclosures are not particularly on the market, because they are not market sales.
thats why they are forclosures and short sales.
the only way they bring down market values is not by comparing them to forclosures, but in a stagnent market not much is going on and people are willing to sell somewaht market rates.
so get off the crack to the people above
4 Responses to “Can a property appraiser compare subject property with other distressed sales?”
By frak1a12345 on Feb 6, 2010 | Reply
Yes. He must use all the comparable sales. He really can’t pick and choose which sales to look at and which to ignore.
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By Christina on Feb 6, 2010 | Reply
Yes, and he should. It is his job to gather the evidence . . . black and white. It’s not up to him sort through why a house sold for what, and a lot of times he may not have the information, like whether it was a short sale. It was the same with the over inflated markets . . . it was not up to the appraiser to determine why the values were going crazy, just to report them.
Short sales and foreclosures can, and probably will, bring down values in their neighborhood.
References :
VA & NC Realtor
By LU13 on Feb 6, 2010 | Reply
i have no idea what the people above me are smoking, and if they appraise, they should quit.
the simple answer is no.
forclosures are sales of properties in which the mortgage company is trying to settle fvor under market values so they can just get out of the mortgage.
a true real estate appraiing teqnique is to use comparable sales which are sold at market rates,
the definition of market rates is that the buyer and seller close on a market value that is suitable to both parties. forclosures are not particularly on the market, because they are not market sales.
thats why they are forclosures and short sales.
the only way they bring down market values is not by comparing them to forclosures, but in a stagnent market not much is going on and people are willing to sell somewaht market rates.
so get off the crack to the people above
References :
By Gary Smith, Realtor® on Feb 6, 2010 | Reply
Nancy, The property appraiser is usually working for the lender, even though the buyer is paying. They try to use the most recent similar sales and if some of those are short sales or foreclosures, those may be used.
This will continue affecting housing values for at least a year after the number of foreclosures decrease because most appraisers are required to only look at history (solds)
References :