Do you know of recent distressed real estate sales in your neighborhood? There are a total of 26 homes in a nearby sample neighborhood. Last year one home was foreclosed on and sold to a very nice family who did a wonderful job renovating the home. Another home sold for $45,000 below its previously appraised value. There is another home now under contract at a strong price. Will the appraiser for that lender be able to find comparables to support that sale? And if he does, will the lender’s underwriter accept his work? Let’s hope so. Follow this blog to find out what happens. Every neighborhood is in this same situation.
The truth is that distressed sales and non-distressed sales in a neighborhood create two different realities. Appraisers are expected to include the distressed sales in their evaluation. The good news is that appraisers are now trying to include more comparables in their evaluation than they did 3 years ago when they sometimes only chose three. Now they may choose five or six. This hopefully will allow them to include the distressed comparable sales while including more non-distressed comparable sales to support a stronger value. This effort on the part of appraisers will sustain values and allow the market to stabilize. Their challenge is finding more non-distressed sales than distressed ones. Luckily, in the triad market of North Carolina; this is, in most cases achievable. Are you curious as to the recent activity in your immediate market that affects the value of your home? Contact Josh Greer at 336-765-7676 or email at Josh@JoshGreer.com. Share this article by emailing it or by visiting www.realestateperformancetoday.blogspot.com to post this article for your Facebook friends to see. There will be future information available to assist in your real estate performance. Visit Facebook.com/JoshGreer, send a friend request so that you can see future market news and visit www.JoshGreer.com for local real estate resources.
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