I listed this home for $229,900 and it is a great home. Kitchen in the basement fully finished 5 bedrooms 3 bathrooms amazing landscaping. Outdoor kitchen, it was a great house. We went under contract at $215,000 which was way below what I felt like the property was worth. The sellers were motivated and were willing to drop the price to sell quickly to take advantage of their next home.

The buyers ordered the appraisal and I could not believe this home appraised at $199,000. What a joke. The buyers had to come in with cash above the appraised value just to close on this home. 

When I looked closer at the appraisal the appraiser used 2 short sales and 1 foreclosure. How is that a fair appraisal.  He said he put most of his value behind the foreclosure, which I don't think he even noticed was a foreclosure. I argued what a terrible job this was and was told well, if its on the MLS then they can use the comparables.

When I looked back 6 months for comparables the majority of sales were foreclosures and shortsales. This is a direct result of the tax credit that ended in April of last year.  When you look at our statistics of sold homes you will notice there was a HUGE drop in sales in June. 

So what is happening, is, right now our market is starting to heat up and do better, when the appraiser has to go back and look at sold comps its only garbage distressed homes. So homes that are selling are selling for short sale and foreclosure prices. You can see how high January's numbers are and I believe its just going to get stronger and stronger as we move towards this summer.  

Thankyou,
Dave Teasdale
Associate Broker, AHS, e-Pro
Team Teasdale Realty

Dave@TeamTeasdale.com
www.TeamTeasdale.com
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