Yesterday I set an appraisal appointment with a listing agent. This was an FHA appraisal assignment of a very cute and well maintained home that was purchased two years prior with FHA financing.
She was very pleasant and accomodated my request for entry into the home. I asked for an appointment that day, however we agreed on me observing the home the next morning. I reviewed the listing on the multiple listing service and selected comparable sales that might be good sales, these were homes that were also in good condition.
Later on that last night I got a phone call from that listing agent. I paraphrase her statement "Would the REO sales and listings in the neighborhood hurt the appraisal value?" Well she was not the client of the report, so I could not talk specifically of this appraisal. I relaxed her with generic talk about good comparable sales in a neighborhood are often the best sales for a good subject property inside the same neighborhood. I went on to say that REO sales often have problems associated with them, unless they have overwhelmed the market, REO are usually sales represent an oppertunity for a different buyer than a neat and clean marketable home.
The listing agent was pleasant in her questions and I did not mind the phone call. I understand that this type of phone call was not common last year, however I understand this kind of phone call is just part of the current market conditions and real estate depression that we currently have.