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Appraising as if in foreclosure

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heelsfan

Freshman Member
Joined
Aug 7, 2006
Professional Status
Certified Residential Appraiser
State
Virginia
An attorney is trying to negotiate a quick sale with a lender. The subject is about to go into foreclosure and he wants to know what the home would likely sell for if it went into foreclosure and/or auctioned. Has anyone dealt with a situation similar to this? I would assume I would be in compliance with USPAP as long as I explain the situation in the report and change the scope of work involved with the appraisal. Any insight would be greatly appreciated.
 

David Dietz

Member
Joined
Oct 30, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I have not heard of appraising as to an auction value, but I have appraised to refelct an anticipated sales to sell in less than 30 days. This would require forecasting with listings and the value for the appraisal would be Anticipated Sales Price. If you have enough data in your area regarding auctioned property were you can figure a percentage by which the auctioned homes sell below market you may be able to use that as well.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Take a look at an REO addendum, it might be the way to go.
 

jtinmichigan

Member
Joined
Feb 7, 2008
Professional Status
Certified Residential Appraiser
State
Michigan
These may be two very different values. In my area auction prices have been lower by approx 15% than foreclosure sales through realtor/MLS etc. I don't see any USPAP issues, its sow.
 

Parker

Sophomore Member
Joined
Nov 3, 2007
Professional Status
Certified Residential Appraiser
State
California
My God, Buy a Copy of “The Dictionary of Real Estate Appraisal” and look up “Liquidation Value”! m2:
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
I was just getting ready to say "liquidation value".
 

Midwest Guy

Senior Member
Joined
Dec 12, 2006
Professional Status
Certified Residential Appraiser
State
Missouri
Do you have to be so strong with the response. The guy was asking a simple question.:nono:

My God, Buy a Copy of “The Dictionary of Real Estate Appraisal” and look up “Liquidation Value”! m2:
 

heelsfan

Freshman Member
Joined
Aug 7, 2006
Professional Status
Certified Residential Appraiser
State
Virginia
My God, Parker, pick up a copy of "7 Habits of Highly Effective People" and learn how not to be an *** when responding to someone's honest question. Thanks to all others that replied.
 
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