Real Estate Professional Network

According to the survey, the average short sale sold for $209,200 in November, while the average move-in ready REO property sold for $189,700. Damaged REO properties sold for far lower at $98,600.

At the same time, non-distressed properties sold for an average of $258,900.

The authors of the survey noted in their report that the appraisal system for mortgage originations uses comparative values from both distressed and non-distressed properties and they say appraisers are often unaware of the interior condition of foreclosed homes or the special circumstances of short sales.

Prices agreed to in purchase and sales contracts are sometimes not being supported by appraisals for mortgage financing. This is something I'm experiencing first hand. In the 30 years I've been listing and selling properties in the Knoxville, TN area, I've only had two properties appraised for less than the agreed sales price: One was many years ago and both the buyers and I knew they were paying too much...the other one was very recent and I will never know how the appraiser could justify a value as low as he put on the property! I feel that appraisers are frequently working outside their area of expertise (they are not familiar with the geographic area) AND they are becoming unusually conservative because of prior bad acts by a few appraisers and mortgage companies...an "overcorrection", if you will.

Damaged and short sale properties frequently sell to cash buyers for less, causing declines in average home prices. These lower amounts are reflected in appraisal reports and adversely affect values for sellers who are NOT distressed. When appraisers use short sales and foreclosures, the market is adversely affected, making it difficult to sell non-distressed, non REO properties.

For owners considering selling in the Knoxville area, please give me a call. I would be delighted to look at your home and give you a computer-generated comparison of your home to others similar to it that have recently sold. There is no charge for this service and it will give you a very good idea of what to expect in today's market.

Laurel can help you with every aspect of your sale and/or relocation: 865 389 2551 or her office: 865 690 4300.

Visit her web site: http://www.LaurelGrandle.com. You can begin the search for your perfect home right there!

Laurel Grandle sells homes throughout the East TN Area, including Knoxville, Karns, Farragut, Halls, Powell, Loudon County, Knox County. She specializes in Lake homes, Luxury homes, Historic homes, New Constructionand is an expert at matching buyers with the right house, regardless of the area or price range, she has over 25 years of experience and has helped thousands of clients with their real estate needs.

Here is what some of her clients have said about her recently, “Laurel has an unlimited amount of patience. My family has very specific needs and she understood them and worked with us until we found the perfect home at the right price. I don’t think anyone else would have done that for us and we’ll always be thankful we found her and worked with her. She’s wonderful!” Margo

“Laurel has accommodated us on many occasions very quickly, as our schedules change all the time. She was always understanding of the time and date changes and she helped us find a great house.” Williams

“Thank you! It's wonderful having you as our agent and we both think you're a terrific person. Bob was right when he said we'd love you.” Joe

“Laurel really knows the area and the market. She didn’t waste any time…she showed us what we ask for in the location we wanted and made the whole move a very good experience for our family”. Robert

“Before we wrote an offer, Laurel did a detailed market analysis for us and discussed it with us so we understood what a fair price would be. She went over the entire contract in detail and clarified everything for us. We purchased with confidence and we’d never use anyone else IF we ever decide to sell!” Anne

Exit Realty Knoxville (each office independently owned and operated) is your number one resource for all your real estate needs, including listing, sales, referrals; our EXIT agents are committed to serving you—put us to work for you: 865 389 2551