• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Market Value vs. Distressed Sales

Status
Not open for further replies.

Rick Johnson

Thread Starter
Freshman Member
Joined
Jan 12, 2007
Professional Status
Licensed Appraiser
State
California
The definition of market value includes: "both buyer and seller are typically motivated...." The majority of sales and listings in my area are distressed, REO and Short Sales. Obviously these are not typically motivated sellers. The sales prices and listing prices of non-distressed properties are impacted by the competition of these distressed sales and property values are going down. How is the definition of market value squared with the use of distressed sales to determine the value of a non-distressed property? The easy answer is since there are so many distressed sales, they are typical, does this fly?
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Depends on the SOW, Intended Use, and applicable Definition of Market Value:


for Example: use non-distressed subject - non-distressed comps ONLY.....for conventional mortgage lending

value declines, if any, for non-distressed closed comp sales indicated by comparison of N.D. earlier sales vs current sales to confirm WHETHER the volume of distressed/discounted local sales HAS impacted "full market value" sale prices OR not......and if so, by how much (in a given time frame).


$$ apples to (-)pears never mix well. "full boat" value indicators v non-distressed Subject - ONLY.
 
Last edited:
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks