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Old 09-17-2008, 09:09 AM
 
Location: OK
2,721 posts, read 6,309,548 times
Reputation: 1844

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Quote:
Originally Posted by TristansMommy View Post
Well.. in short sales there is usually an appraisal done by the bank when the house goes on the market. and they are VERY conservative. I really do believe mine underappraised my short sale...
If that is indeed the case you should inform the bank and ask to have another one done.

Just like there is no excuse for over-valuing a property there is no excuse for undervaluing either.

Of course, as it was appraised as a short sale the comparables used were most like also short sales, as it should be.
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Old 09-17-2008, 09:42 AM
 
Location: Pennsylvania, USA
5,217 posts, read 4,126,876 times
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Quote:
Originally Posted by Schousse View Post
If that is indeed the case you should inform the bank and ask to have another one done.

Just like there is no excuse for over-valuing a property there is no excuse for undervaluing either.

Of course, as it was appraised as a short sale the comparables used were most like also short sales, as it should be.
What I don't understand is why "short sales" shouldn't be used in comparables. A short sale does not neccesarily mean that you sold it for less than market value.. only less than what you owe.. There is a BIG difference in the two.

He used recent sales in the neighborhood taking in account all the sales. .. probably with acception to foreclosures.. as THOSE are the ones that will sell for less than market.

MINE got full market..so why shouldn't anyone use it as a legit comparable?

I don't think it was grossly under appraised.. just very conservatively appraised.. .. I believe it should have been about $1oK higher.. but even that is significantly less than it was appraised for in 2005 (the current appraisal is 120K less than 2005's)
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Old 09-17-2008, 10:00 AM
 
Location: OK
2,721 posts, read 6,309,548 times
Reputation: 1844
Quote:
Originally Posted by TristansMommy View Post
What I don't understand is why "short sales" shouldn't be used in comparables. A short sale does not neccesarily mean that you sold it for less than market value.. only less than what you owe.. There is a BIG difference in the two.

He used recent sales in the neighborhood taking in account all the sales. .. probably with acception to foreclosures.. as THOSE are the ones that will sell for less than market.

MINE got full market..so why shouldn't anyone use it as a legit comparable?

I don't think it was grossly under appraised.. just very conservatively appraised.. .. I believe it should have been about $1oK higher.. but even that is significantly less than it was appraised for in 2005 (the current appraisal is 120K less than 2005's)
I can't comment on the value specifically because I am not familiar with your market.

All I can say is that when I get an order from a lender to do an appraisal on a pre-foreclosure they ask me for 3 values, among other things a "quick Sale" value and a value when exposed to the market as usual.
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Old 09-17-2008, 10:30 AM
GMU
 
Location: VA
56 posts, read 480,902 times
Reputation: 46
Yup, declining markets do use the SS/foreclosures as comps. Miami is one of those horrible markets, just like Vegas. Probably the worst 2 in the country. We took a corporate relo, and they had to factor in the distressed properties. Sometimes corporate relo appraisals are done differently, but the bottom line is that if the distressed properties represent a significant or majority of the market, they might be used as comps. Stinks.
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