Property Q&A in Mokena>Question Details

ceokarens, Real Estate Pro in Mokena, IL

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Asked by ceokarens, Mokena, IL Sat May 12, 2012

Circumstances of home pricing due to death or forclosure should not have a bearing on home appraisals. This seems to be a pressing issue and wondering what can be done to separate the comps of this type from the process.

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An Appraisal begins with the subject property and works outward beginning with properties of similar age, size and amenities within a 1 mile radius, within last 6 months of "actual Closed Comps". If, there are no recent closed sales within that first 1 mile radius, then the Appraiser begins to expand the search radius out as far as 5 miles until they have 3-4 comparable closed sales. If the search reveals 3 Non-Distressed Closed sales and 1 distressed, Appraiser will typically use the 3 Non Distressed. Likewise, if the subject property Appraisal reveals several distressed sales within close proximity to the property, these will be used as it shows that there is significant downward pressure due to high number of distressed sales in that particular area.

Since this question was initially put forth last May 2012...the market has improved significantly. The number of distressed sales have dropped significantly. When I work with a Seller I always make sure to provide 3 Actual Closed Comparables for Appraiser, I simply print them out and place them on the kitchen table for his/her use. I offer this because often times an Appraiser assigned to evaluate a given property may not be familiar with the area and I find they welcome the Broker's assistance. If the comps used are apples to apples, there is no reason an Appraiser would not use them. Appraisers often get the bum wrap, they are not out to get the seller, they must uphold certain guidelines.
0 votes Thank Flag Link Mon Dec 31, 2012
I would agree . it is interesting that appraisal to create market value must use and will use distressed properties however when are tax assessor is assessing a property for value for taxes they will not use distressed property. there is obviously a severe disparity here. when using distressed properties to compare against and non distressed property for purposes of value appraisers are supposed to use a formula that weights distressed properties less than a non distressed property to create a more compare able and fair comparison however I have not seen that being done all the time with appraisals. it is a big problem for people who are trying to sell their home and are being compared with distressed properties that are not in the same condition. the only thing you can do to fight appraisals is to get another appraisal or protest them based on the fact that they did not correctlycompared to stressed and not distressed properties.
0 votes Thank Flag Link Sat May 12, 2012
What do you think would straighten this situation out and pull neighborhoods back into a more favorable condition? What government function would this fall under?
Flag Sun May 13, 2012
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