As Chip Wagner of A. L. Wagner Appraisal Group, Inc, a third generation appraiser and an appraisal industry icon stated at a recent conference:
“If a specific market area has a low amount of distressed listings and comparable sales, it is likely there is little impact on property values, and we may be seeing appreciation taking place. A ‘low amount’ would be under 10% to 15%. In market areas where there is a high amount of distressed market competition, typically greater than 1/3 of the market, this distressed competition has to be analyzed as this is the new ‘norm’ for that market area. Buyers active in that area are looking at all of the competing properties and making their purchase offers and buying decisions based on all of the information available to them.”
Fair or Unfair, the price of a short sale is a comperable sale. Bank owned and other distressed sales will also bring down the apraisal value. That being said the value of your home is based only on what a buyer will pay for your home in this market when compairing other simmilar homes.
So in short if you purchased in April '10 you are probably looking at a lower purchase value today than when you purchased.
If you would like to find out what your neighbors home sold for or what the home down the street is on the market for.
Trulia has some great market stats.
If you need to sell for less than what you owe let us know.
Yes, they can if there are not any other comparable sales that the appraiser can use to justify the price of the subject property.Appraisers can take into consideration the condition of the home when they use the foreclosure as a comparable.With the current market conditions, the banks are being very conservative with lending thereby appraisers are also conservative. As far as what you can sell your house for will depend on the real estate market in your area. Bottom line is the market will determine the price of your home. The longer it is on the market, you will have to reduce the price of your home. Since your home is listed, you should talk with your realtor to see what homes have gone under contract in your area,. Your agent can also ask for feedback from other agents to see what other buyers are purchasing. This will give you an idea of why your home has not sold.Generally if you purchased a home in 2010, it is hard to make a profit however it is a case by case basis since we do not know whether you got a great deal on the house when you bought it. Good Luck with the sale of your home!