David Saks: David Saks ((retired))

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Does the Need for An Appraisal Exist at a Foreclosure Sale?



Does the need for an appraisal exists in a foreclosure auction, tax sale or other lien or default associated consequence which brought the sale about? When would a foreclosure require an appraisal? Wouldn't a broker price opinion satisfy a basic need to determine a reserve price by narrowing comparative sales data? I understand that sales comparison, cost approach and income approach are all important and that the three approaches may serve as checks against each other. Since the condition of sale is affected because of foreclosure, which is a principal factor for making an adjustment in value under the sales comparison approach, why would the lender use an appraisal instead of a broker price opinion if financing is not a fundamental exponent of the sale and no lender is involved with a buyer? Wouldn't the lender only be concerned with an auction reserve since the court is involved with the buyer? The court only accepts a cashiers check for the full amount at the time of purchase. The court doesn't work with Wachovia, Wells Fargo or Sun Trust and the court doesn't ask for an appraisal either on the court house steps. I believe that a broker price opinion could work for the buyer or investor since the purchase is not contingent upon financing. Not that I'm comparing a podiatrist to an orthopedic surgeon, but I believe each opinion of value has an important and critical function and the degree of increasing or diminishing return would best be suited for the appraiser. Comparative sales for the broker, in a foreclosure or REO prior to auction. I know there are grey areas. I'd like to see more thought on Active Rain as regards this important issue. Many thanks for the input of all of our honorable members.

David Saks

Time&Temp Memphis

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Mr.Saks' participation in ActiveRain ended April 13, 2015.

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Comment balloon 5 commentsDavid Saks • March 23 2008 11:24AM
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