Leon Marcus
Junior Member
- Joined
- Jan 24, 2008
- Professional Status
- Certified Residential Appraiser
- State
- Illinois
Have I been wrong? I have only done a few as is sales that are bank owned. Some ok condition actually with only a few minor cosmetic probelms. Others in horrible condition and need extensive work.
I always have been able to find at least three if not five sales of as is or bank ownd properties and have used them. In the report I describe the house and the mess, describe the sales I use are also the same condition and as is. They really have not been the majority of the market but there were sales I could use. I understand Fanny Mae says
"You will not use REO sales for your comps unless they are the market. If REO listings and sales are the market then you need to explain that fact ion your appraisal. "
I think that if I have sales of as is bank owned sales it is ok to use them. It may not be typical for the market but I describe it and use sales that actually were as is. I was just told by an appraiser that I can not and I am wrong. He stated that another appraiser that does many Forclosure sales on a very regular basis NEVER uses as is sales, only typical sales.
I understand if there are no REO properties than you use the best you have and comment. But why ignore the comaprable as is sales since they are purchased by a buyer with the same mototvation.
So, am I wrong and do I need to never, as I was told, use bank owned sales for a bank owned appraisal I am doing?
I always have been able to find at least three if not five sales of as is or bank ownd properties and have used them. In the report I describe the house and the mess, describe the sales I use are also the same condition and as is. They really have not been the majority of the market but there were sales I could use. I understand Fanny Mae says
"You will not use REO sales for your comps unless they are the market. If REO listings and sales are the market then you need to explain that fact ion your appraisal. "
I think that if I have sales of as is bank owned sales it is ok to use them. It may not be typical for the market but I describe it and use sales that actually were as is. I was just told by an appraiser that I can not and I am wrong. He stated that another appraiser that does many Forclosure sales on a very regular basis NEVER uses as is sales, only typical sales.
I understand if there are no REO properties than you use the best you have and comment. But why ignore the comaprable as is sales since they are purchased by a buyer with the same mototvation.
So, am I wrong and do I need to never, as I was told, use bank owned sales for a bank owned appraisal I am doing?