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 Foreclosure / REO Appraisals
Here at Home Appraisals, Inc., we have been seeing an increase in the number of requests for REO / Foreclosure and Short Sale Appraisals throughout the state of Florida. This is usually the case when markets experience decreasing property values over a number of years. In many cases, the loan amount on the home is greater than the home's current market value. This results in homeowners giving the home back to the bank in a foreclosure or requesting a short sale. A short sale is when the bank allows the home owner to sell the house for less than the loan amount on the house. In order to do this the bank requires an independent appraisal to be done. Please call us if you would like to discuss your options or have any questions.
Homes in foreclosure and homes that have reverted to your institution's ownership present special appraisal challenges. At Home Appraisals Inc., we're more than ready and able to help. Our primary counties of coverage are Miami Dade, Broward and Palm Beach.
For a property in foreclosure, you may need to know the difference between fair market value and "quick disposition" value, to know your potential charge-off liability. At Home Appraisals, Inc., we have experience in both providing snapshots of fair market value for our mortgage lending and servicing clients as well as "quick sale" forecasts that understand your timeline.
Owners of property in foreclosure, of course, present special challenges. They may be unwilling to allow an inspection of the property. If they have abandoned the property already, they may have neglected care of the home for some time -- or worse, caused damage. We have the experience and training to deal with the special dynamics of a foreclosure appraisal, and you should not hesitate to rely on us.
For a property that has already reverted to Real Estate Owned, you likewise will be interested in a quick disposition. But you may want to know and compare four values: As-is, as repaired, As-is quick sale, as repaired quick sale. These represent the value of the property without any work done to it, with the work required to make the property marketable to full market value commensurate with competing properties in the area, and, somewhere in-between, with minimal investment in repairs -- selling the property quickly, probably as a "fixer-upper." Again, we understand your timeline and the unique circumstances of an REO property, as well as the special information you'll need -- competing listings, market trends, and the like.
The criteria for a Real Estate Owned property differs some what than a standard appraisal. Here at Home Appraisals, Inc. we usually use the following criteria when performing a REO Appraisal:
All closed sales are from within the past three months, even if we are unable to locate closed sales in the subject's development we widen our market area search to stay within three months. This gives a more accurate assessment of current market conditions. We also use three active listings of comparable residences and record the listing price histories such as days on market and price change dates.
Please browse our website to learn more about our qualifications, expertise and services offered.
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