I am very confused about what is acceptable to use as comps on a pending arms length transaction. My wife and I are in the process of purchasing a home and just had the appraisal completed yesterday. Although the home we are purchasing is a regular arms length sale the appraiser used what I would consider 5 distressed comps, and if not 5 three were definitely distressed.
comps 1,3, and 5 were short sales, while comps 2 and 3 were bank owned from foreclosures. I understand that here in Florida short sales do make up a significant part of the market, however, my and the selling realtor sent a number of regular sales to him as comps. He stated that because of the market he is using short sales to do comps. I am of the opinion that short sale comps should be adjusted when comparing with a subject property that is a regular sale. He appraised the property almost 15k less than purchase price.
Please help me out here, we are so frustrated right now and seem to be now in a situation where his ego will not allow him to work with us on this. I don't want to hire another appraiser if this is standard practice.
comps 1,3, and 5 were short sales, while comps 2 and 3 were bank owned from foreclosures. I understand that here in Florida short sales do make up a significant part of the market, however, my and the selling realtor sent a number of regular sales to him as comps. He stated that because of the market he is using short sales to do comps. I am of the opinion that short sale comps should be adjusted when comparing with a subject property that is a regular sale. He appraised the property almost 15k less than purchase price.
Please help me out here, we are so frustrated right now and seem to be now in a situation where his ego will not allow him to work with us on this. I don't want to hire another appraiser if this is standard practice.