New appraisal rules?
I read somewhere that now banks are going to require appraisers to include foreclosures as applicable AND go no further out than 3 months for comps. This could have the effect of hurting sale prices further.
We are probably going to be affected. A foreclosure just closed near us for less than HALF of our asking price (which at least 3 realtors suggested, btw, and the lowest suggestion was only for about 5% less). So I think I have it priced reasonably; the home is in excellent and flawless condition. The foreclosure is *almost* a tear-down. Good piece of land, but you name it, it needs fixing. Various neighbors who have seen it agree it will probably take some 80%-90% of the selling price again, to bring it up to condition. Which would make it close to ours, and ours is still bigger and has more features.
Is the first para above pretty much the way it will play out, do you think? The word Draconian comes to mind, but I suppose I'd be singing a different tune if I were a buyer today. I can't help but think this will depress home prices further, which is surely not the point of all these other efforts to bring stability back to the housing market. IMO the banks have fleeced the American taxpayer yet again and are continuing to do so and we can't do a thing about it.