- Nov 17, 2003
- Professional Status
- Certified Residential Appraiser
I'd like to use a foreclosed or short sale property as a comp in an appraisal of a regular refi. I try to avoid this, but in my current case, it makes the most sense. I've been reading Brad Ellis's and others' comments about not using sales that don't meet definition of market value. But what about the problem that occurs when the most similar, proximate properties that are perfect comps are short sales or REOs. In particular, this is a neighborhood with 30% of listings and closed sales on MLS either REOs or shorts. It seems to me to go to go out of the neighborhood or use a dissimilar property presents other problems, and that a well chosen short sale or REO support and the market value of the subject. In this particular neighborhood, my market analysis doesn't even show a decline of median value comparing each quarter of last year. It doesn't entirely make sense, but that's what I found. (It dropped in Q3 and rebounded in Q4). Most of the discussions about this are over a year old. What are people doing now?