Prince Foreclosure
Real Estate Appraisal: Normal to use foreclosures as comps? What’s $ adjust figure per sq/ft in PG Co. MD?
I got an appraisal on my home which is for sale. The comps used were 3 foreclosures which have been sold, then foreclosed on within the last 6 months. Their prices have been almost cut in half or at least by a 25% in the last 4 months. There are also 2 more comps in the report – 1 that is under contract now (no way of saying for how much exactly) and another that is still for sale but “needs repairs”. Does this sound normal to compare my house which is move-in ready, needs no repairs and is not a foreclosure or distress sale? Also, the average price per sq. ft between all the comps is $115 to $160/sq ft. Yet the appraiser uses $20/sq ft to adjust the different in square footage between my home and the comps. I pulled out the appraisal for when i purchased the home in 2005 (I’m now selling the home for about the same price that i paid for it) and the appraiser then used $50/sq ft for the adjustment. Is there a standard? This is in Prince Georges County, MD. Thanks!
If you are trying to sell your house this is not good, I didn’t think thy would ever use foreclosed homes, after all they usually sell for a lot less than normal. You can get another appraisal but you will have to pay for it. I would try calling the appraiser and ask him if that was the only comps he/she could find or what was the reason for using these? This will make your home look like it is worth a lot less, and then if a seller’s appraiser wants to see this wow….I think that is bad or lazy of the appraiser.
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