I’m not sure if this is a common story or not, but here it is:
One of my agents (yes I have two agents) just put a three-family under agreement in Somerville for $550,000. The buyers have good credit and are approved for a loan amount of over $550,000. The process was going smooth until the other day, when a Bank of America representative called to notify the buyers that one out of the two appraisals didn’t support the purchase price. (one was using a foreclosure sale)
Here’s my question, are foreclosed properties a good measure of “fair” value, and should they be included in appraisers comps? Some believe that foreclosed properties are often sold below market value, and are often times not not well maintained. On MLS many foreclosed properties are sold “as is” and, as Bill Clinton would tell you, the state of those properties often depends on what the word “is” is.