Wednesday, February 8, 2012 — Many of our readers ask us if appraisers use distressed properties (short sales and foreclosures) as comparables when doing an appraisal on non-distressed properties. We have posted on this issue on several occasions (examples: here and here). Last month, the Appraisal Institute issued a paper on the subject. In the paper, the Institute explained that:

“Foreclosures and short sales can provide important information for appraisers, who develop valuations based on market data and market forces.”

On whether an appraiser should use distressed properties as comparables, the Institute was very direct (all items in bold were shown as bold in the original paper):

“An appraiser should not ignore foreclosure sales and short sales if consideration of such sales is necessary to develop a credible value opinion.”

And they explained the possible differences between short sales and foreclosures:

“A short sale … might have involved atypical seller motivations and so might not be an ideal comp…

A sale of a bank-owned property might have involved typical motivations, so the fact that it was a foreclosed property would not render it ineligible as a comp.”

Bottom Line

Some will argue that distressed properties should not be used when appraising non-distressed properties. However, there is no longer any doubt that they will be.

Ben Bernake

Federal Reserve Chairman Ben Bernanke will speak about fixing the housing crisis during a visit to the International Builders’ Show in Orlando.

Bernanke is scheduled to speak at 12:30 p.m. Friday.  The show is being held at the Orange County Convention Center.  Stay tuned for results on his speech.

Thurs evening in the gated community of Waterfort Pointe in Windermere FL, this 7,000 sq ft home under construction was destroyed by fire.  Investigation is underway but possibly could be arson.  Here is a picture of a home that is in that community that could be similar to the one the burned.  This home is 5800sq ft.  If it is found out to be arson, everyone pays with higher insurance rates.

With the worst Real estate market in 75yrs, we have become accoustomed to bank foreclosures and short sales as the norm  However, Real Estate being cyclical, we just might be exiting this cycle of massive foreclosures and entering a more “normal” real estate market in the near future.

Foreclosures have decresed by 8.4% or – 130,000 in 2011 according the research by CoreLogic.  The pace at which properties are entering foreclosue is slowing and the banks stepped up their rate at which they were able process distressed assets.

Lenders are being much more cautious who they lend to putting even qualified buyers through a string of hoops before they will approve a mortgage. They are also being more cautious to jump the gun and foreclose on a homeowner in trouble since they got in trouble with the robo signing.

Banks also are doing more loan modifications to prevent foreclosures. And when a home does land in foreclosure, banks are trying to process them faster or trying to encourage a short sale.

So if you are a buyer looking for a home, the time is now to get these deals because they WILL not last forever.  We will return to a normal real estate market and you will long for the days when you could have found a home for these low prices.

1485 Langham Terr, Lake Mary, FL 32746 (MLS # O5073032)

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Short Sale..Contemporary Masterpiece worthy of Architectural Digest Magazine. Only the finest finishes and appointments in this waterfront home.The seller left no detail out of this spectacular home. Extensive travertine and granite throughout. There is an oversized gourmet kitchen with double ovens, 5 burner cooktop, built in steamer in counter, full refrigerator and full freezer, warming drawer, microwave, unique wave sink in granite center island, solid maple cabinets and walk in pantry. This home was designed with five bedrooms with two masters downstairs and three bedrooms upstairs. All bedrooms have walk-in closets and private bathrooms with travertine showers. Master bedroom has a waterfront view. Large bedroom area, master has steam shower, hydro jet bath tub, large open shower, two separate vanities with separate cabinet spaces and large walk-in closet . There is an abundance of storage throughout. Saltwater pool with disappearing edge overlooking the water front. It is impossible to list all the magnificent details in this home, please view the photos and virtual tour to fully appreciate..

Property Type(s): Residential / All, Residential / Single Family

Last Updated	1/10/2012	Tract	Heathrow / The Reserve
Year Built	2005	Community	n/a
Garage Spaces	2.0	County	Seminole
Total Parking	2	Walk Score ®	11

Additional Details

Features

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with STIRLING SOTHEBY'S INT'L RLTY

(view all details for MLS #O5073032)

Alaqua Lakes golf front

We're sorry, but we couldn't find MLS # O5040457 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

MLS # O5081395 in Windermere, FL 34786

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This magnificent home, is located on approaching 2 acres of Lake Butler in Isleworth Windermere, Florida. Isleworth is renowned nationwide as one of our nations finest golfing communities. Complete with motor court, 7.5 car garage, a lake front guest house and separate maid's quarters. The home contains a main kitchen, plus a cater's kitchen, home theater, and billiards room. Add to this a gathering room, formal living room, and a 37 ft family room and the result is a true, one-of-a-kind residence. It is difficult to put into words the scope of this amazing house, so please visit our virtual tour and contact us for further details.

Property Type(s): Residential / All, Residential / Single Family

Last Updated	1/26/2012	Tract	Isleworth
Year Built	1990	Community	n/a
Garage Spaces	5.0	County	Orange
Total Parking	5	Walk Score ®	8

Schools

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Features

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with BALLINGER'S PROPERTIES

(view all details for MLS #O5081395)

9800 Kilgore Rd, Orlando, FL 32836 (MLS # O5041311)

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3-Story Butler Chain lake front masterpiece. You will know you've arrived as you travel down your 200 foot long brick paver drive framed by over an acre of lushly landscaped grounds. As you open the solid mahogany front door your eyes are greeted byspectacular views of the Butler Chain and a towering two story grand salon with beautiful marble columns and a stone fireplace. The exquisite 2 story master suite features a sitting lounge, spiral staircase to a second floor fitness room and a massive spabath with floor to ceiling marble, onyx countertops, and top of the line fixtures. The chefs kitchen features beautiful granite surfaces, gorgeous custom cabinetry, Thermador appliances, Sub Zero refrigerator, and a large walk in pantry. Owners will fallin love with features like a private elevator, 7 large bedrooms, 8 baths, 2nd kitchen, home theater, 2nd master suite, and 4th floor observation tower. This home is an entertainers dream, from the resort style infinity edge pool with travertine marble patio to the huge third floor veranda with serving area, refrigerator, and outdoor fireplace. This home is new and never lived in so don't miss the extraordinary opportunity to own one of the last new Butler Chain homes in Dr. Phillips. Less than 5 minutesfrom restaurant row, minutes to luxury boutiques, and close proximity to all of the area theme parks the location of this one of a kind 8,000 sq foot home simply can't be beat.

Property Type(s): Residential / All, Residential / Single Family

Last Updated	2/14/2012	Tract	Millionaires Row
Year Built	2007	Community	n/a
Garage Spaces	4.0	County	Orange
Total Parking	4	Walk Score ®	8

Price History

Schools

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Features

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with REGAL R.E. PROFESSIONALS LLC

(view all details for MLS #O5041311)

Use a Buyer’s Agent

What is a Buyers Agent?  Don’t all agents work for me?

It’s important that you choose an experienced agent who is there for you. Your agent should be actively finding you potential homes, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.

First, find an agent who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer’s agent, he or she is required not to tell the seller of your top choice. In addition, he or she is also focused on getting you the lowest asking price.

Also, when you use a buyer’s agent, you will see more properties. Not only are they plugged into their Multiple Listing Service, but they are also actively finding homes that are listed as FSBO, or homes that sellers are thinking about listing.

Finding the Right Seller

The best seller is one who is highly motivated. A highly motivated seller is more likely to sell at a price that is less than his or her house is actually worth. And it matters that you find out why. Learning the reason why can help you get the price you want and help the seller get what they want: a timely sale.

When given the opportunity to meet with sellers, ask them why they are selling. The reason could be anything, such as a job change to a new location or financial problems. If you can solve their problem, whether it is cash related or time related, do so. For example, if the sellers are highly motivated because they need to move quickly, give them a fast sale – and a lower price. If you can make an offer, even a low one, that gives them cash in a short time, they are more likely to accept.

BUYERS – Once  you have made the decision to buy a new home whether it is a move up home or a relocation from another city or state or your dream vacation home, let my knowledge of the area work for you.  Determine if you want a golf community, a gated community or a waterfront home on a ski lake and base your search from there.  I have showed and sold homes in many of the areas finest communities so I know the characteristic differences of each community and will match your needs and lifestyle with those communities.  Skill and knowledge of the current inventory of  the market is an added plus for you as many large internet sites may not be accurate in their information.   Ultimately YOU the buyer are in charge by letting me know what you want in a property and community.  I will be your guide to help you find your dream home.  I can give you my professional opinion on the differences of communities and how one may be better than another for your needs.  Contact me today to get your buyer search started today!

9832 Laurel Valley Dr, Windermere, FL 34786 (MLS # O5061384)

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The Best of Isleworth! Incredible better-than-new Estate directly on Lake Butler and Isleworth's Hole 15! Perched above the sparkling waters of the famed Butler Chain of Lakes, this is simply one of the most desired locations in all of Windermere. Thismansion offers three-floors of breathtaking views, modern elegance, and something for everyone: 6 bedroom suites, movie theater, BRAND NEW game/casino room, playroom, and BRAND NEW exercise room overlooking the lake, playroom, and wine cellar. The main floor features an impressive living room with oversized stone-framed fireplace, separate formal dining room, master retreat and spa, gourmet kitchen with family dining room, spacious family room with beautiful rich dark wood built-in cabinetry, and second sitting area framed by floor to ceiling picturesque windows. There is direct access to a large balcony for an even better view of the magnificent sunsets! The state of the art kitchen includes beautiful granite countertops, a full island with preparation sink, a WOLF professional 6-burner gas stove, Sub-Zero refrig/freezer, built-in espresso machine, and entertaining wet bar with beverage cooler. The top floor offers a separate retreat or office and five full bedroom suites including a guest room with morning bar. The dock has brand-new Trex decking and includes an automatic hoist for boat and jet ski. 8-zone security system installed. Automatic house generator is powered by a separate gas line that runs all living areas, kitchen, theater, and A/C.

Property Type(s): Residential / All, Residential / Single Family

Last Updated	11/16/2011	Tract	Isleworth
Year Built	2004	Community	n/a
Garage Spaces	4.0	County	Orange
Total Parking	4	Walk Score ®	8

Price History

Schools

Additional Details

Features

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with KELLER WILLIAMS CLASSIC REALTY

(view all details for MLS #O5061384)