Short Sale Appraisal Question

[residentialguy]

That would most likely depend on the agent advising the buyer and, as a buyer, my motivation and time requirements.

When there's a 7.5% difference in sale prices on average, there is no way they will also sell for the same. If they could...they would.

 

[Blueprint]

Thaks to all of you for your input. You guys have have helped me better understand my beliefs. I am going to do my job.


Very Of Topic:
I frankly don't care much about paper work. I am sick of the weakness our industry represents. Government walks all over us and we allow it. I will proudly defend any appraisal at any time. Gov can only use illicit tactics if they ever want to show my work in negative fashion.
This is the way we need to think a whole. Power is everything. We can have it all it if we allow ourselves. We, as independent appraisers, always have the power to take control of the situation.

 

[Blueprint]

Fear (insecurity, intimidation, anxiety, aversion, distress, revulsion, etc) not gov't, is our greatest enemy.

 

[Blueprint]

The grass is much greener without the fear.

 

[Nevermind 3]

Simply ask yourself this ...

There are two properties offered for sale. They are in the same neighborhood. They are the exact same model and in very similar condition. One is offered as a traditional sale at, say, $200,000. The other is a short sale and offered at, say, $185,000. Which one would you, as the buyer buy? Now, tell me what is market value?

One problem is the Seller of a short sale is not the one that makes the decision of what price to accept. They are not equal transactions.

 

[Lee Lansford]

Simply ask yourself this ...

There are two properties offered for sale. They are in the same neighborhood. They are the exact same model and in very similar condition. One is offered as a traditional sale at, say, $200,000. The other is a short sale and offered at, say, $185,000. Which one would you, as the buyer buy? Now, tell me what is market value?

I can't tell you what is the MV, but, I do know that there is demand for both. With this awareness, and assuming that the market is not totally irrational, there's something else going on here which results in the different prices.

Much more often than not in the suburban and city areas which I frequent, I merely have to look at the MLS information of a property and I can distinguish the REO/Short Sale from the 'traditional' property in the blink of an eye based upon one thing: price.

 

[Blueprint]

Simply ask yourself this ...

There are two properties offered for sale. They are in the same neighborhood. They are the exact same model and in very similar condition. One is offered as a traditional sale at, say, $200,000. The other is a short sale and offered at, say, $185,000. Which one would you, as the buyer buy? Now, tell me what is market value?

In my coverage area, most would pay the $200K as they want move-in ready and do not want to put up with the 8 months of hell involved with a short sale. It feels so good in my rich boy style hood.