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Stephanie Ir…, Real Estate Pro in Los Angeles, CA

With the increase in standard sales, are appraisers mainly using standard sales as comparables for refi's, or are they still including short sales?

Asked by Stephanie Irto, Los Angeles, CA Tue Mar 26, 2013

For this particular loan, there are 17 standard sales within a mile and 7 short sales & REOs. If the house was listed for sale, it would be listed as a standard sale.

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7
But in some areas, inventory is still quite low. And if there are few sales on record, or active/pending, what choice will appraisers have but to include distressed properties...they only have to make some adjustments accordingly.
0 votes Thank Flag Link Thu Mar 28, 2013
Many short sales could have gone into contract a year ago when prices were much lower and thus when they close are not representative of the current market. I hope appraisers are using standard sales. It will be interesting when all those low priced short sale comps get worked out of the system and are replaces by standard sales comps.
0 votes Thank Flag Link Thu Mar 28, 2013
My experience has been similar to Yanoska. If available non-distressed will be used.....ESPECIALLY if the 'real' comps are made apparent to the appraiser.

Even then, you will be required to rely on proper vetting of the buyer assuring their ability and willingness to increase their down payment.
It is still a rigged process. But, at least now it is completely predictable.

Your question, however, is regarding RFI's which use a much more generous calculation ...and there is no buyer or down payment involved.

Moral to the story: Don't rely on the appraiser to find the right comps and don't allow the appraiser to overlook the homes tangible assets. That is where the pros play an essential role.


Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
"If you are serious, it's worth a call."
0 votes Thank Flag Link Thu Mar 28, 2013
I hate to disagree, I work very close with property appraisers, if fair market sale is available, fair market sale will be used. The use of a short sale will have to be justified by no fair market sales at all.
0 votes Thank Flag Link Wed Mar 27, 2013
Unfortunately they typically do not filter out the REO and Short Sales--especially if they are the most recent sales. Fortunately condition of the home, amenities, etc should be favorably weighted for a standard sales as they are usually in better condition.
0 votes Thank Flag Link Wed Mar 27, 2013
Equity Builders,

I agree with Cindy's base comment; basically, Appraisers do not filter out Short Sales and REO’s. In addition, out of the mix of 17 comps, the Appraiser will also be selecting the comps that best match the subject property in amenities, location, condition and time of sale.

Hopefully an Appraiser will also comment on this thread.

-Steve
0 votes Thank Flag Link Wed Mar 27, 2013
Appraisers include all recent sales regardless of the type of sale it was.
0 votes Thank Flag Link Wed Mar 27, 2013
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