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REO Help

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mattelk

Freshman Member
Joined
Feb 8, 2016
Professional Status
Certified Residential Appraiser
State
New Jersey
I have pushed to do a REO for a client and have been working with 2 appraiser with over 25 years each. Looking for some other opinion on how I comp the report. I did as is sales, and 2 actives like a regular report then did 3 for REO addendum that were as repaired listings. One guy said don't do as repaired for REO and he also said just use 3 sales on your grid and no listings. What is the best way to do it? Ive seen it with 2 actives in grid and no actives in grid. Also should my REO addendum listings be as is listings?
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
at least 4 sales, 1/2 sales as REOs, 1/2 sales neither REO nor Short.
at least 4 listings 1/2 that are REO, 1/2 that are neither REO nor Short.

I would use as repaired sales and listings within the mix.

Extract all adjustments from comparison between all the sales and listings you are gridding.

.
 

mattelk

Freshman Member
Joined
Feb 8, 2016
Professional Status
Certified Residential Appraiser
State
New Jersey
at least 4 sales, 1/2 sales as REOs, 1/2 sales neither REO nor Short.
at least 4 listings 1/2 that are REO, 1/2 that are neither REO nor Short.

I would use as repaired sales and listings within the mix.

Extract all adjustments from comparison between all the sales and listings you are gridding.

.
They want 3 listings all REO if possible. REO addendum only has 3 listings. Do you put any of those listings in the sales grid? I have 5 sales 1 REO and 2 actives for my as is value. Then 3 as repaired listings 1 REO for my addendum listings
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
You can't give REO sales or listings if there are none. Or non distress sales if they don't exist.
I use a couple similar condition to subject and a couple similar to it as repaired, to support that value.
I normally do 4 or 5 sales plus 3 listings, pending or active, in the REO addendum.
Fee has to be at least $100 extra for the REO addendum, or I am not doing it.
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
Throw the REO addendum in the garbage where it belongs. Do a Liquidation Value or Disposition Value.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Since when does the REO addendum preclude a Liquidation or Disposition value? Kinda seems like those 4 values point thatta way...:shrug:
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
Not going to get into it. You go ahead and use the REO Addendum that changes the unchangeable definition of Market value and ignores the real catalyst of REO sales.
 
D

Deleted member 134708

Guest
If your client wants to know what that REO will sell for as-is and as repaired. Do whatever necessary to produce a credible result.

To me, this would mean using all REO's as 1 would conclude an REO type of transaction is best represented by other REO transactions with all else being equal or near.

If can't find enough REO, use a non-REO transaction and just duduce the REO transaction effect your subject will incur.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Not going to get into it. You go ahead and use the REO Addendum that changes the unchangeable definition of Market value and ignores the real catalyst of REO sales.

Unchangeable definition of market value? :rof:You should do stand up at Joan's Expo.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Post 2 and 4 gave decent guidance...the rest, .... follow at your own risk.

as is value is what it says, as is, the as repaired value is the estimate contributory value of repairs made tor an " as repaired" second value.... I tend to use similar as is similar to subject listings on the REO addendum.
 
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