Auction property used as comp ruined deal!

joanstraughn · Joined: 17 Apr 2008 Posts: 1 1.34 Dollars($)

Is there some sort of guidelines that are used to prevent appraisers from using auctioned properties as comps? We just had this happen and it made our appraisal come in 15,000 lower and killed the deal! It doesn't seem like these types of comps should be allowed just like a foreclosure comp should't be allowed

jameshogg · Posted: Thu Apr 17, 2008 9:35 pm Post subject: RE: auctioned properties as comps

Hi joanstraughn,

Welcome to forums.

As much as I know, the appraiser conducts an appraisal by comparing market values of similar properties which have already been sold in the particular area. So, even if it's an auctioned property, I don't see any problem in using such properties for appraisal.

evolovik26 · Posted: Fri Apr 18, 2008 7:00 am Post subject:

If there were no other better comps in the area even foreclosure properties may be used as they are the only basis for the current value of the home. Most appraisers will try to determine the fair market value. So if your home isnt currently worth as much as you want there is nothing you can do.

gmakerley · Posted: Sat Apr 19, 2008 6:27 am Post subject:

i'm in agreement with eugene - an appraiser chooses the best available comparables. if that auctioned home was truly one of the best available, that's about all that can be said.

brian1 · Posted: Sun Jun 22, 2008 7:04 pm Post subject:

It is a comp and unfortunately all across the country this is happenning and will continue to happen. It is sad that one persons inability to fulfill their obligations has a trickle down effect but it does.

B

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