My house is worth WHAT?!

[n7hn]

I thought they werent supposed to use forclosures into a appraisal calculation. Its a different quality of property as owners often delay maintenence on it [[neglect it), and may have trashed and stripped the property, and its a different buyer mindset too, because of these differences in quality and marketing .

[eastsidechris]

Unfortunately, due to some changes in regulations, they can use foreclosures as comps. Your points are valid and logical--which is why we were so ticked off to get our appraisal back. As our former realtor told me just yesterday, "If you're going to use the least common denominator as a means of comparing house values, every house should now be worth only what the most run-down foreclosed house in the area finally sold for." Read the links I provided--those articles are eye-opening, to say the least.

[vanta]

The banks require the comps to be properties to be within a 1/2 mile radius sold within the last 3 months... can't use a comp from last summer, can't us a comp from X-Mas, you have to go with recent comps.

[REL]

Someone mentioned LIBOR: It stands for the London Interbank Offered Rate. Think of it like the US prime rate, only tied to the global economy.

Unfortunately, others have had the idea of torching places, too. This article in today's Detroit News: http://detnews.com/article/20090820/...ghout-Michigan

"More than the Michigan economy is smoldering. Suspicious fires are increasing across the state, with fire officials saying that some despairing owners are risking prison to get out of debt and vacant, foreclosed homes are being torched by drug dealers and bored teens."

[Meddle]

"Sport Torching" is nothing new in Motown. Been happening for decades.

[REL]

But the uptick is alarming, nonetheless. Detroit is indeed no stranger to arson, but look at the recent data.

[REL]

http://detnews.com/article/20091024/...nk-home-values

From the article:

"Many Realtors say new appraisals rely too heavily on the prices of foreclosed homes and "short sales" -- houses that sell for less than what the homeowner still owes on them. Foreclosures and short sales can artificially depress other home values in an area, and lead appraisers to undervalue nearby homes on the market as well. And in an area hard hit by foreclosures, as Metro Detroit is, it's a significant factor."

"Under the new rules, mortgage lenders are in charge of that part of the appraisal process. The lender can use an in-house appraiser or farm it out to an appraisal management company that may or may not be local, or have knowledge of the community.
The new appraiser may not know, for example, about upscale neighborhoods of mansions in Detroit, just blocks from seriously run-down areas where houses are going for next to nothing."

[sumas]

My sister also lives in EEV. I was stunned when she told me a seriously cute cape cod style house across from her was going for only $13,000.

[Gistok]

Two years ago, the median home sale in Detroit was 3x what it is today.

A $20,000 appraisal sounds reasonable. It isn't 2007. Deal with reality.

Crawford, if you can't post anything besides flippant one liners from your distant enclave of Long Island NY, why do you even bother posting here?

If you weren't so lazy in your quick comments, you might have simply said that right now the foreclosed properties have a depressed effect on the entire market, and until those properties have been sorted out and the market settles... lower prices are to be expected... period!

And for what it's worth... a non-distressed property next door to a relatives house in [[not as nice) Cornerstone Village next door to EEV just sold for $65,000.

Crawford I thought you were a real estate expert?? I guess not...

[Lorax]

My sister also lives in EEV. I was stunned when she told me a seriously cute cape cod style house across from her was going for only $13,000.

I know, it's amazing what some of these really attractive homes are going for.

My sister's English style home, built in the 30's on Bishop sold not too long ago for around 20k.

She sold it nearly 20 years ago in the 60's.

[Eastside]

I'll bet our taxes will not follow the same trend as the housing costs!