Without getting into too much detail, I recently had a short-sale property on the market, listed UNDER $100,000. We had an offer 6 months ago, but like many short-sales, the bank took so long to respond that the buyers walked. However I did manage to find out where the appraisal came in before it all fell apart.
Long story short, I submitted a more recent offer to the (same) bank on the (same) house. Since the last appraisal was 6 months prior, they required a new one be done.
Here's the kicker... the appraised value of this home APPRECIATED $23,000 in just 6 MONTHS time!!! That is very nearly 1/3 of the listed price in appreciated value in 6 MONTHS!!! Is it just me or is that an INSANE RATE OF APPRECIATION???
Based on my understanding, the first appraisal must have allowed short-sales and foreclosures as comps. Six months later, the (same) bank required the second appraiser to EXCLUDE all short-sales and foreclosures in determining "Fair" Market Value.
My question is this... Shouldn't banks have the same requirements for ALL appraisals on a specific property, or none at all?
Also... Is it "Fair" to exclude short-sales as comps when the subject property is a short sale?
I would love to hear YOUR THOUGHTS on this matter!
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