The Realtor Association of Greater Miami & The Beaches has posed this question to its members and Realtors are voting on it:
Do you think the county appraisers should consider SHORT SALES when determining a property's value?
My answer posted on the Board's site is:
If you're talking about a closed short sale being used as a comparable, then absolutely, my answer is an appraiser should use it. But many appraisers use Active listings to help them determine value when there are not enough sales in an area. Then my answer is absolutely no, because an active short sale is not an indication whether a bank will accept that price for the property. On the other hand, an active foreclosure could be used, as we know that a bank would accept that asking price for the property.
40% of the respondees said that short sales should not be considered as they are not a true reflection of the market while 60% said that short sales are evidence of true market conditons. The vote is still out, so we'll see what my fellow Realtors decide.
What's everyone elses opinion?
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