Foreclosure AppraisalsProperties in foreclosure and properties that have returned to the bank's holding present specific appraisal challenges.
There is a great myth and misunderstanding about properties being sold in Foreclosure. The general comment is that "properties can be purchased for well below market value". Related to other similar neighbouring properties this could be true, but there is more to it.
The fact is that when a mortgagee sells the property they are acting as "trustee" for all interests involved with the property including their own. The mortgagee usually obtains appraisals to get independent professional opinions as to the value and marketability of the property. Order an Appraisal
Since the owner or mortgagors of the property were not able to make the mortgage payments they were also probably not able to upkeep the property and may have deferred or not repaired many regular maintenance items of the property. At the end of the day the property maybe in a "rundown" condition. Roof requires shingles, broadloom floors are worn or stained, hardwood floors require refinishing, heating system requires updating, kitchen or bathrooms are an older style and so on... So, did the property sell for below market value? No! The property sold for "market value" in relation to other comparable properties that were better maintained. The mortgagee is obligated to sell the property for market value. However due to court and mortgagee imposed limitations (reduced realtor commissions, reduced market exposure, limitations outlined in the Schedule A, market stigma, and reduced financing options) the property may sell at market value. This reduced value is referred to as a Forced Sale Value. RVS Appraisals are skilled at developing both value estimates.
Again, we understand your time line and the complexities of a foreclosure or bank sale, as well as the specific information you'll need -current sales, competing listings, neighborhood trends, and so forth. You can rely on Residential Valuation Services Inc. to take on the task of your foreclosure or bank sale with expertise and professionalism.Contact us today.