Why are appraisers using short sales and bank-owned properties as comparables in appraisals?How have out-of-area-appraisers affected our recovery? It's been hamstrung. Many appraisers are using short sales and REO's as comps in non-distressed appraisals. The main distinction which needs to be made is why compare apples to oranges? Let me explain. If a buyer wants to buy a short sale versus a regular (non-distressed sale) they would do so because they are selling for much less (as much as 20-25%). This is due to longer marketing times. The longer marketing times are because of longer decisions by lenders. If the buyer has the time to wait a short sale is a great buy. REO sales typically represent the bottom tier of sales prices due to stolen high ticket items and depreciation from lack of maintenance. The point is many appraisers are not using TRUE comparables. This is having an adverse affect on a recovery, killing many deals, and making people who are already in a tough situation have to pay for one or more appraisals because the deal was killed. The main reason has to do with out of the area appraisers being used by lenders. See my blog if you want more information about my area. [edited by Zillow moderator to remove website]Best,Jonathan TiptonAugust 10 2011 - Tampa00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.