Andrew Urbanek
Sophomore Member
- Joined
- Apr 30, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
I received my first REO order request (Im sure the first of many with the way the market is heading down here) and before I talk with some other state certs that have more expericence with REOs I thought I would ask a few questions here.
OK, so I have a REO appraisal request for a single family home and my client stipulates the following two points:
* You MUST provide a 90 day value for the subject property.
However, if the marketing time for the subject's market is less than 90 days,
then your final value will reflect a less than 90 day value.
* You must provide at least two sales which sold 90 days or less
after list date. The 90 days-on-market can be total days on market or
can be days-on-market at the last reduced listing price. If using
days-on-market at the last listing price or if you are using less than 2
comps that have days-on-market 90 days or less, then a detailed explanation
is required.
Basically, are they looking for a 90 day liquidation value instead of market value which may be based on 3-12 months of market exposure? The order request also had these points:
* 3 Closed Comparable Sales. All comparables must be within 1 mile
from subject and sold within the last 6 months. NOTE: If comparable
sales exceed proximity/sale criteria, detailed explanation is required.
* 3 Comparable Listings. If not reported on the "Supplemental Real
Estate Owned Appraisal Addendum" form, the listings must be gridded,
and must be adjusted in the same manner as the comparable sales.
* Cash, REO or distressed sales are acceptable for this 90 day
valuation product.
Thanks for any feedback!
OK, so I have a REO appraisal request for a single family home and my client stipulates the following two points:
* You MUST provide a 90 day value for the subject property.
However, if the marketing time for the subject's market is less than 90 days,
then your final value will reflect a less than 90 day value.
* You must provide at least two sales which sold 90 days or less
after list date. The 90 days-on-market can be total days on market or
can be days-on-market at the last reduced listing price. If using
days-on-market at the last listing price or if you are using less than 2
comps that have days-on-market 90 days or less, then a detailed explanation
is required.
Basically, are they looking for a 90 day liquidation value instead of market value which may be based on 3-12 months of market exposure? The order request also had these points:
* 3 Closed Comparable Sales. All comparables must be within 1 mile
from subject and sold within the last 6 months. NOTE: If comparable
sales exceed proximity/sale criteria, detailed explanation is required.
* 3 Comparable Listings. If not reported on the "Supplemental Real
Estate Owned Appraisal Addendum" form, the listings must be gridded,
and must be adjusted in the same manner as the comparable sales.
* Cash, REO or distressed sales are acceptable for this 90 day
valuation product.
Thanks for any feedback!