REO online course completed, is it my understanding.

Discussion in 'General Appraisal Discussion' started by KJR2008, Nov 6, 2009.

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  1. KJR2008

    KJR2008 Junior Member

    0
    Jun 3, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    Completed the Mckissock online REO course, for those who are doing REO's, am I right in my understanding that when a property is in need of extensive repair that it should be viewed as one that would not be purchased by the typical buyer but more likely an investor, and it would be more accurate to use properties that have sold as REO's and the value provided would not be considered MARKET VALUE?. If a REO is in a condition that the repairs needed to bring property to a marketable condition are minor, it is accurate that arms length transactions sales would be the ones to use and make any necessary condition adjustments and that would reflect MARKET VALUE. In a situation where a property has extensive damage and non reo sales are used as comps, is it accuate to adjust for repair cost, etc and INVESTOR PROFIT assuming that the most likely buyer of the property in its present condition is an investor.
     
  2. nstanbru

    nstanbru Member

    0
    Feb 19, 2009
    Professional Status:
    Certified General Appraiser
    State:
    California
    How do you know what the investor profit would be unless it was purchased by an investor, fixed up and resold? Also, just my opinion, but to me an REO should be compared to other REO sales/listings.
     
  3. KJR2008

    KJR2008 Junior Member

    0
    Jun 3, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    It seems to me that if a REO property is in average condition and has the ability to compete with other properties of a similar condition that are not REO's, that would appeal to the typical buyer, that to compare the properties to only REO properties would not provided an accurate indication of market value.
     
  4. biker4ever

    biker4ever Junior Member

    0
    Nov 3, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    if you have enough Comps to go either way and they are recent sales, I am jealous! Right now, it is difficult enough to find 3 recent sales, let alone worry about whether they are REOs or conventional sales.
     
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