Posted by Rob FL on February 12, 2002 at 11:40:08:
Things may be slightly different in Detroit. But here is the way it works where I am at. The property gets listed at appraised value. After a period of time (normally 45 days) if it doesn’t sell, the price is reduced. If it doesn’t sell at the reduced price after a time, it is reduced again. This process continues until someone finally closes on it.
As for the value determined by the appraisal, normally the price on the appraisal is it’s After Repaired Value minus the cost of repairs. This value does not include the cost of an investor to purchase, hold, and resell the property nor should it. That’s not how the appraisal guidelines work.