01-01-2011, 01:45 PM
I don't see the industry stats and work with appraisers like John, but I know that my son bought an REO last year, and talked to the tax assessor about why he was assessed for 100K more than he paid for the house, which had been in a very run down condition.
Long story short, the higher assessment stuck as the market value, not the sales price. As he remediated the poor condition, he didn't get a break for that either.
As I understood it, the sale was considered to have been well under market value, as a loss, which did not lower the actual market value of the home.
The presence of REO's and foreclosures does make it hard to sell at a decent price, but OTOH it is not the same product as a home that shows pride of ownership. It's most likely a fixer.
Long story short, the higher assessment stuck as the market value, not the sales price. As he remediated the poor condition, he didn't get a break for that either.
As I understood it, the sale was considered to have been well under market value, as a loss, which did not lower the actual market value of the home.
The presence of REO's and foreclosures does make it hard to sell at a decent price, but OTOH it is not the same product as a home that shows pride of ownership. It's most likely a fixer.