The University of St. Thomas-The Difference Between Traditional Sales & REO’s

by Michael Bolton on October 25, 2011

 

Distressed vs Non-Distressed

 

The University of St. Thomas just completed a study that really shows why it’s important to know the difference between what distressed and non-distressed sales are selling for within a particular neighborhood, especially when it comes to completing an appraisal. Keep in mind that there are times that the concentration of foreclosures is so high that you have no choice but to use distressed properties. I want to thank Craig Kamman with Edina Realty for bringing this study to my attention, please check out his blog it’s chock full of great stuff.

 


What’s very interesting about this study, as you can see from their graph above, that the decline in prices was only 9.5% since 2005 for traditional sales, compared to 28.4 % according to the Case Shiller Index for all homes. This a great article and I encourage you to read it in its entirety, here’s the link.

If you have any questions, or real estate appraisal needs (divorce, bankruptcy, tax appeal, or estate planning) please contact Michael at 612.599-2581, or use the form on the contact page.

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