Louisville, KY

Quote of the Day, February 13th, 2012

02-13-12

Steve Elmore: Real Estate Agent in Louisville, KY

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Office: (502) 357-7070

Mobile: (502) 777-8181

"I believe through learning and application of what you learn, you can solve any problem, overcome any obstacle and achieve any goal that you can set for yourself."

-- Brian Tracy, Author

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3014 Galleon Dr. - Updated 3 Bedroom Raintree Meadows Brick Ranch - $179,900

02-09-12

Jessica Gaines - Louisville Gaines Real Estate

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Office: (502) 432-1918

Beautiful Raintree Meadows ranch with open floor plan and many upgrades. Unique peninisula fireplace with built-in shelves makes this living room stand out. Large deck sets off the backyard.

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Neighborhood Guide: Springhurst Louisville KY

02-07-12

Jimmy Welch - Homes in Louisville,KY

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Office: (502) 439-1404

The Springhurst neighborhood is located in northeastern Jefferson County of Louisville and has 1,116 families. It is conveniently located right off the Gene Snyder Freeway at Brownsboro Road and Hurstbourne Parkway. The area is known for its excellent schools, shopping, and amentities. The Summit shopping center is located in Springhurst as well as the Springhurst Center and Brownsboro Park.

The homes can appeal to a wide variety of homeowners with condos and homes ranging from $150,000 to over $500,000. The subdivision is ideal due to its wide streets and sidewalks, mature trees and spacious yards.

To view homes for sale in Springhurst, go to Homes for Sale in Louisville KY.

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Do Appraisers Use Distressed Properties as Comparables?

02-07-12

Sean Williams, Your Louisville Realtor

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Mobile: (502) 727-9784

This has become a growing question in the real estate community especially for buyers and sellers as the market has seen a large increase in short sale/foreclosure/distressed properties. Before this was such an issue, generally appraisers would not consider one of these types of properties since they were "not comparable" or an outlier from the comparable homes. Louisville Kentucky Home Appraisal

Well, with so many of these short sale/foreclosure/distressed properties flooding the market, appraisers have had no choice but to consider them since they are in fact "the market". Unfortunately, this has brought down housing prices and decreased homeowners equity in the same neighborhood because of the neighboring houses declined/lower value.

Last month, the Appraisal Institute issued an article on the subject. In the paper, the Institute explained that:

“Foreclosures and short sales can provide important information for appraisers, who develop valuations based on market data and market forces.”

On whether an appraiser should use distressed properties as comparables, the Institute was very direct (all items in boldwere shown as bold in the original paper):

“An appraiser should not ignore foreclosure sales and short sales if consideration of such sales is necessary to develop a credible value opinion.”

And they explained the possible differences between short sales and foreclosures:

“A short sale … might have involved atypical seller motivations and so might not be an ideal comp…

"A sale of a bank-owned property might have involved typical motivations, so the fact that it was a foreclosed property would not render it ineligible as a comp.”

Some will argue that distressed properties should not be used when appraising non-distressed properties. However, there is no longer any doubt that they will be considered...at least during the current market begins heading north again.

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