• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Appraising as if in foreclosure

Status
Not open for further replies.

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.
 
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.
 
Take a look at an REO addendum, it might be the way to go.
 
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.
 
My God, Buy a Copy of “The Dictionary of Real Estate Appraisal” and look up “Liquidation Value”! m2:
 
I was just getting ready to say "liquidation value".
 
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:
 
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.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top