J Grant
Elite Member
- Joined
- Dec 9, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
http://www.housingwire.com/articles...vervalued-markets-doubles-since-first-quarter
A recent article on it...they report entire markets as being over valued ( and conditions are mild now compared to bubble of 2006 -2007), so yes, markets as a whole can be over valued. (according to experts)
Which is different than an appraisal report setting out to over value an individual property.
The point is, when an entire market cycle sees a large # of properties over valued, the benchmark of sale prices can become skewed. The constant benchmark for an appraiser is the application
of the market value definition terms to the sales.. Was the buyer acting prudently, knowledgeably , was price affected by undue stimulus, etc. Whether one adjusts for these terms or not, they can help screen out certain sales and analyze the ones used.
A recent article on it...they report entire markets as being over valued ( and conditions are mild now compared to bubble of 2006 -2007), so yes, markets as a whole can be over valued. (according to experts)
Which is different than an appraisal report setting out to over value an individual property.
The point is, when an entire market cycle sees a large # of properties over valued, the benchmark of sale prices can become skewed. The constant benchmark for an appraiser is the application
of the market value definition terms to the sales.. Was the buyer acting prudently, knowledgeably , was price affected by undue stimulus, etc. Whether one adjusts for these terms or not, they can help screen out certain sales and analyze the ones used.
