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How do you get a 30-60 day value on foreclosed property?

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Debra

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Hello!

I'm working on a foreclosure and they want 4 different values "as-is" "as-repaired" and how much they could sell it for in 30-60 days "as-is" and as-repaired". The normal marketing time at present in that county is 4-6 months. What is the best way to come up with the 30-60 day value? Thanks. :)
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Debra,

Consider looking for any dicounting for the 30-60 day value. Look for houses in your MLS that have sold in that time period and see if there is any discounting for this shortened marketing time, (other foreclosures, estate sales, divorce sales etc..). They might not be good indicators of actual market value but they may provide the discount rate. Talk to realtors and see what they think about any possible discount. I did one of these one time and it was different than typical foreclosure with four values. I did find some sales that showed a discount for shortened sale time. You may come up with a percentage range for this and decide from there. Explain everything and the opinion of values.

Ryan

P.S. Charge accordingly.
 

David S. Roberson

Senior Member
Gold Supporting Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I look at auctions and calculate a percentage based on auction price and fair market value.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Famous Mikie - ism...."it depends".

I would check my MLS for average days on the market. Then I would look for properties that sold in, say, half that or less. Compare those prices and see if the market is reacting to "quick sale value". As a general rule (my market) a discount of 20 to 25% would be in order.

Sounds like you might already have a problem since most REO appraisals ask for value based on normal marketing time of 120 days or less.

The real trick is estimating cost to cure....but that is another topic.
 

Debra

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Hello!

I don't have MLS in that county...but I took very comparable properties within a mile of the subject that had sold out of foreclosures and estate sales and got that they sold an average of 20% less than "normal" sales. So...it sounds like I'm in line. Thanks for all the help! Debra :)
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Good, sounds about where I thought it might be too. Now, what are you wearing? LOL. JUst teasing :D
 
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