Market Conditions in 76013>Question Details

Shawn Ramsey, Real Estate Pro in Arlington, TX

Are appraisers using foreclosures when determining market value?

Asked by Shawn Ramsey, Arlington, TX Fri Sep 30, 2011

I am a broker in north Texas, and I feel that I already know the answer to this question, but the issue does tend to create heated debates. I am looking to get some other agent/broker opinions on the subject.

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Answers

8
Foreclosures and short sales are going to be with us for quite a while. They have definitely affected the values of real estate across the board. Unfortunately, our economy will not improve without an improvement in the real estate industry and real estate is unlikely to improve until we see less of these "distress" properties.
2 votes Thank Flag Link Fri Sep 30, 2011
Well said, to summarize pay your bills people, lol
Flag Thu Feb 14, 2013
Rarely no, foreclosures and short sales can effect market value of a set period of time. However, when an appraiser pulls compairable properties I have never seen one use a foreclosure for reference. I can understand if they pull the comps in a subdivision and only foreclosures pop up, yet when this happens typically an appraiser will extend the search to reflect everything within a .5mile, then 3/4 mile radius.

Keller Williams Realty
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1 vote Thank Flag Link Tue Feb 5, 2013
Well said, sir!
Flag Thu Feb 14, 2013
There's not many options if that's all there are near the subject property.
Web Reference: http://www.321property.com
1 vote Thank Flag Link Fri Sep 30, 2011
Hello Shawn,
I'm in agreement with the other responses here that if the REO property is truly comparable and has recently sold in the same neighborhood then yes, it will be used in the appraisal.

I do find it helpful to have my own comparable sold listings available to show the appraiser if he wishes to consult with me particularly if he is not familiar with the area (which is the case with some appraisers nowadays).

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Fri Sep 30, 2011
Sometimes an appraiser if informed at the time of the Appraisal will listen to the realtor® and possibly take their comps into account.
0 votes Thank Flag Link Fri Sep 30, 2011
Apraisals are the source of a great deal of controversy. Not only is the excessive use of distressed properties in generating values a point of contention but the use of appraisers from outside the area of the subject property often a concern. Many professionals feel these appraisals are less accurate than those generated by appraisers that are from the area and have a feel for community values.

Bill
0 votes Thank Flag Link Fri Sep 30, 2011
Hi Shawn,

Yes, they are if that is what the market area consists of - which in most markets today is the market.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Fri Sep 30, 2011
I completely disagree with this statement.
Flag Tue Feb 5, 2013
Yes, our market is stuck with little options but to consider the use of foreclosures and short sales as comps. I think we have a broke system for selling houses that needs to be corrected, and an even worse system for appraising a homes value.
0 votes Thank Flag Link Fri Sep 30, 2011
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