- Dec 2, 2007
- Professional Status
- Certified Residential Appraiser
My question is this...........Should a comparable that appears to have been bank owned or a possible foreclosed property be used as one of the three primary comparable? Heres an example issue that I have been running across lately. Tract subdivision. I have 3 comps less then six months old that are the same model, same age, gross living area, etc. Two sold for let’s say $200,000 and the third appeared to be a foreclosed property that sold for $170,000. Am I obligated to use the third comparable? Is that an actual arms length transaction being a foreclosure? What is everyone else doing in this situation? My associate and I think one thing one day and another the next. The one unit housing trends usally show some type of decline and an over supply. Any insight would be greatly appreciated. I look forward to hearing your responses.