It is the job of a certified and experienced appraiser to understand each valuation type and fulfill a complete report to the best of their abilities. In this regard, a Real Estate Owned (REO) property valuation is no exception, and the licensed professionals that work with AmeriMac are always up for the challenge. Their experience, especially within their local markets, allow them special insight into the true value of properties they are appraising, and the same goes for REO properties.
Real Estate Owned property appraisals necessitate unique parameters in their appraisal report. More specifically, REO properties are acquired by a lending company for the purpose of investment or via foreclosure of mortgage loans. These properties are also called “owned real estate” (ORE), and “other real estate owned” (OREO).
Unlike a typical appraisal during a home purchasing process, a property that has been foreclosed upon is a different situation. This circumstance demands dynamic knowledge and a higher skill level, and AmeriMac’s team of appraisers are up for the task. For example, in the event of multiple foreclosures occurring in a single neighborhood, both the area market as a whole and the individual property values are impacted.
In many cases, REO properties have been abandoned by the owner and sit vacant – prone to vandalization and hazardous conditions over time. These properties could be unlocked, unsecured, or could contain unwelcome occupants; human or otherwise. Clearly, Real Estate Owned property appraisers must be ready for anything.
Typically, an REO property appraisal pursues one of the below value opinions:
The property’s market value considering any repairs necessary to bring the property up to its full value potential compared to similar properties. Essentially, the market value if the property is repaired, compared to similar properties in the area.
The property’s market value in its current condition without investments, repairs, or improvements. This value opinion also takes market exposure time into account, usually within 120 days. This span of time is called “typical market exposure time”.
On occasion, when performing an REO appraisal, the integrity of the property’s original appraisal comes into question. In these cases, a retrospective appraisal may be necessary with an effective date at a point in the past. The data from that time period is within reach, and the experts at AmeriMac have the knowledge and skills required to perform such an appraisal. Should the need arise for an expert witness in the courtroom, see our page on Litigation Support Services.
Our focused and qualified team of appraisers have the specialized expertise that an REO appraisal demands. They understand the unique circumstances that come with an REO property, and they are prepared to deliver an appraisal that is complete and compliant with a fast turn-time. Contact us today and see how we can elevate your appraisal process experience.