This is not entirely true:
2-3 years ago, everyone, including Appraisers, eliminated Shortsales and REO's from their list of Comps. The "distressed" sales were distorting the market, and we want to exclude them.
It would take an MIT Program to figure out what a house would/should be worth now without distressed houses taken into account:
It would not be just a matter of not using SS and REO's as comparrisons, because every sale for the ;ast 3 years has been affected by the distressed sales. Even a "traditional/normal" sale has been lowered.
At their peak, SS & REO's accounted for 80% of the sales, so no one could effectively ignore them any longer.
You can't say that a house that was worth $1,000,000 in 2005, and is now "worth" $550,000 does not have a "foreclosure discount".
But, like I say, it would take an MIT Program to calculate what any house should be worth:
It's not fair, but it is REALITY!