• 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.

Need help with REO's

Status
Not open for further replies.

Sophie Grace

Freshman Member
Joined
Jan 28, 2008
Professional Status
Licensed Appraiser
State
Texas
It seems like adjustments in REO addendum can sometimes be subjective....What opinions/advice can I get about how to calculate cost to cure repairs for REO's and how to calculate "as repaired", "as is" quick sale, "as repaired" quick sale. For cost to cure do you include installation/labor costs? How do you estimate that?

My sponsor used to always go behind me and just tweak numbers to whatever he thought, wouldn't usually tell me why and the only reason I know this is because I'd have to go behind him to see what he did. He was awful and no he's not my sponsor anymore. I am licensed but still feel lost sometimes. The majority of my business is now REO's and I'd like to have some structure to what I do in case I need to explain myself to someone.

Actual answers would help. Thanks!!
 

MZ818

Member
Joined
Dec 12, 2003
Professional Status
Certified Residential Appraiser
State
California
Your "as repaired" values should be the estimated cost to cure based on the market's reaction, not actual costs. That's what the client is trying to figure out. If they put in x amount of money, then what will the return be if any at all.
 

Flygirl 152

Senior Member
Joined
May 3, 2006
Professional Status
Certified Residential Appraiser
State
California
Someone else posted a link to the free cost estimaor, so I can't take the credit. It determines cost and installation by zip code. In my experience the client wants to know the cost to install since they are the ones liable for fixing the inadequecies. This cost estimator gives you the cost of the repair installed if you choose.

After a while the REO addendum becomes easier. Just remember that you don't adjust the listings on the REO addendum.

http://www.costestimator.com:8080/consumer/index.jsp
 

Dan/Fla

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I agree what is stated above. Quick sale values. Every market I would assume to be different. Here is is running between 15-22% depending again the market. & REO already listed. Example if the as-is value is $100,000 and you are using 15% the quick sale As-is value is $85,000. The use the same percent against the as repaired value for its quick sale value.
 
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