“If sales in a project include short sales or forclosures they would not normally be considered comparables because the terms of those sales do not fit the definition of Market Value upon which those appraisals are based.”
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Bugs, this is a particularly interesting point in light of what is sure to be a large wave of refi attempts to avoid ARM resets. What I am hearing, in general, is that if short sale/foreclosure sales in comparables do not rise to a level so as to be considered typical, they need not be considered by an appraiser. If this is correct, “typical” comps may keep the market propped up enough to allow for refi’s before resets.
