Ariba
Senior Member
- Joined
- Feb 8, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Colorado
I would like some input on a rural condominium property. I am appraising 3 condominiums that were recently sold at a real estate auction. The condominiums were sold Absolute, meaning that they were sold to the highest bidder regardless of price.
There are no other condominiums in the market area and therefore NO comparables. However, there were a total of 20 condominiums sold at the auction in the same building. Eight have closed so far. I will choose the three best comparables for my report.
My question:
since no market exists for condominiums in this rural area and no sales are available, other than the once sold at the auction, do these sales establish the market for this rural area? To put it another way: can a market be established by a real estate auction since these sales can be considered distressed?
Can anyone think of a reason were you could/would appraise a condominium for more than the highest bid? Can these sales be considered distressed sales and make an adjustment in the grid? Based on experiences of other real estate auctions?
Any words of wisdom regarding real estate auction would be appreciated?
Ron
There are no other condominiums in the market area and therefore NO comparables. However, there were a total of 20 condominiums sold at the auction in the same building. Eight have closed so far. I will choose the three best comparables for my report.
My question:
since no market exists for condominiums in this rural area and no sales are available, other than the once sold at the auction, do these sales establish the market for this rural area? To put it another way: can a market be established by a real estate auction since these sales can be considered distressed?
Can anyone think of a reason were you could/would appraise a condominium for more than the highest bid? Can these sales be considered distressed sales and make an adjustment in the grid? Based on experiences of other real estate auctions?
Any words of wisdom regarding real estate auction would be appreciated?
Ron
