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Stip of the day (month)

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Dale Smalley

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Got this from an AMC on an 3 month old file

"Lender has advised they have had no success selling this property after appraisal was completed. Lender has requested a 30 day 'AS IS' value to assist with selling this property as soon as possible. Please provide a 30 day 'AS IS' liquidation value on your REO addendum"

I have been waiting for them to get the nerve to call me but just emails so far. No they did not offer a fee for this.
 

Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
It sounds like a new assignment to me.

Sometimes I wonder why they don't just drop the price by 2% or more every month until it sells. But I guess that wouldn't work too well if prices are going down by 3% per month.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
They must have put more weight on the BPO done by the listing agent. Now they want you to fix it for them. Charge them accordingly.
 

Dale Smalley

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I guess they read the forum too. Called today so I asked them to explain and they canceled the request. How Bizzarro.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I have not done many REO appraisals during this down cycle. However, I did many during the late 1980s and early 90s cycle. The ones I do now I do the same way. I provide an "as is" value with normal marketing time, as "as repaired" value with normal marketing time and an "as is Quick sale" value with a 30 day marketing time. So, that issue has already been addressed in the original report.
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
Long ago, before appraisal licenses existed, someone I worked for had a CU client
who wanted 30 day quick sale figure on everything, including purchases.
We <quite arbitrarily> used 10% discount, that seemed to make everyone happy.

I've seen some REO sales recently where the Lender accepted 2/3 to 1/2 the initial asking price, with only a 70-80 day marketing period.
Haven't bothered to research and see if the initial ask made any sense at all.
.
 
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Craig Farr

Junior Member
Joined
Sep 26, 2004
Professional Status
Certified Residential Appraiser
State
Arizona
Isn't the easiest way simply to research the competition (listings)? What they really are asking is, "What is the price at which the subject will beat everything similar on the market?"
Assuming the market contains at least a few active buyers, it would be reasonable to conclude that a '30-day market value' is, say, 5% below the cheapest competitive listing.
I hope the evolution of residential appraising (coming legislation) forces appraisers to use six comps, three sold, and the three lowest similar listings, as a minimum appraisal.
Listings are your canary in the mine. Listings will warn of market shifts and trends. Listings are a huge part of calculating value declines and increases.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
In a liquidation, you typically would use sales that are from auctions or REOs and you need to define "liquidation value" separately. IMHO.
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
Isn't the easiest way simply to research the competition (listings)? What they really are asking is, "What is the price at which the subject will beat everything similar on the market?"
..................
Listings are your canary in the mine. Listings will warn of market shifts and trends. Listings are a huge part of calculating value declines and increases.
Listings I see --in doing REOs--- are almost uniformly asking much too much.
Either the Sellers or the Agents are living in dreamland, c.2005, not late 2008.
AFAIC, the listings are useless, and, as the textbooks say, they merely define the upper limit of value-
-circa 2005, and, in most cases, that upper limit on a VERY good day.
 
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