REO Madness

[RSW]

I've been doing a lot of REOs this year like a lot of you do too. I've noticed that I am running into more and more of these homes where the value is basicly land value less the cost to demolish and remove the structure. I've done two in the last few months like that. Have you all been seeing this and how are you reporting it in the appraisal?

 

[Lee Lansford]

...how are you reporting it in the appraisal?

With as much market data and analysis that are necessary in order to communicate a credible appraisal?

 

[Thern Newbell]

I haven't seen too many like that. One interesting thing that I have noticed (maybe it's not new), is that some of the REO's I've been to are listed by out of area brokers. One of the last REO's that I saw was listed by an agent located in Middle Tennessee, with the property being located in East Tennessee. It had to be at least 150 miles or more from the agent's office.

 

[TN Pro]

Ive done a few of these. I basically let the client know what i have found. Generally we would proceed with land value minus cost of demolition.
The interesting part is when you start checking the courthouse records to find that there was a recent loan on the property, sizeable enough to where an appraisal was probably involved....

 

[Offshore]

One of the last REO's that I saw was listed by an agent located in Middle Tennessee, with the property being located in East Tennessee.

I'm getting them lately with the listing office being nearly 200 miles away. The franchise joins the local MLS, opens a "satellite office". I'm considering a site visit to see if it even exists. You always have to dial a different area code to get information from the "local" agent. I was told this is the future of REO listings.

On the bulldozer bait manufactured REOs, I've had a couple where the client permitted the report on a vacant land form. Most still insist on the 1004.