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Cogirl4, Home Seller in 80247

Appraisals in condo complex

Asked by Cogirl4, 80247 Wed Jun 10, 2009

I'm told that appraisals are now based soley on the comps in your condo complex (not neighborhood), and that foreclosures and short sales are also used. Is there any truth to this?

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I haven't heard anything about comps being based SOLELY on your local complex, but that would certainly be the most obvious place to start. The reason is simply that those in your development are most likely to be most similar to yours. The problem with using comps from other developments is that the quality, amenities and price range of even adjacent complexes can vary substantially - just like with neighboring single family home developments. This makes it tricky to ensure that you're actually comparing apples to apples, which is the whole idea of an appraisal.

As for foreclosures/HUDs/short sales, etc., the ideal situation is to NOT use these on a property which is not in that status, unless the market is totally dominated by that type of property. If it is, then they can be used sometimes - especially if there isn't any other choice.

So - yes, the idea is to use properties within your complex - if possible. The idea is also to use 'regular' sales - again, if possible.

Hope this helps...

Terrell
303 638-6413
tw@terrellwilliams.com
0 votes Thank Flag Link Mon Jun 15, 2009
If there are comps in your own complex, they would be used first since they should be the best comps anyway. If there aren't enough comps in that complex, I've not heard of any reason that they wouldn't be able to use comps in other nearby and similar complexes. Typically, foreclosures and short sales are not used as comps for normal sales, but they can be used if other better ones aren't available and price adjustments made for condition, distressed sale, etc.
0 votes Thank Flag Link Wed Jun 10, 2009
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