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There are challenges especially when the subject property is in an extremely distressed state, limiting similar comparable sales. Identifying and supporting adjustments therefore can be difficult and it is not uncommon for the appraiser to apply larger then normal adjustments for the comparable sales location and condition since it is possible that the search goes beyond the normal neighborhood parameters. This is typically not an issue as long as the appraiser explains the rationale. But remember the appraiser must follow USPAP(Uniform Standards of Acceptable Appraisal Practice) guidelines and the methodology and opinion of value must be supported. Every time a distressed property is acquired and renovated it not only provides potential buyers an opportunity for improved housing, it often has other positive impacts, such as gentrification of the market, improving its value and marketability. Its a plus for the immediate neighborhood as well as the adjoining communities.

Posted by Richard Wayne Abatelli on May 22nd, 2019 9:51 AMLeave a Comment

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