In our market, foreclosures are beyond common. They are the only market there is in many neighborhoods. To think they are not decent indicators of what people are willing to pay as of the effective date of the appraisal would be absurd.

In a normal market, an REO sale would be an indication of "dispostion value". DV occupies the space between "Lidquidation Value" (forced sales, foreclosure auctions, absolute auctions without reserves, etc) and "Market Value". Also in a normal market, there is identifiable segmentation between the three. One can readily discern the discounts applied from one value to the next. Put another way, there is measurable space between each segment of the continuum.