REO Appraisals on the rise.

PRLog (Press Release) – Aug 17, 2007 – Tucson Appraisals has added staff with expertise’s in Real Estate Owned appraisals (REO) to handle the in-flux of foreclosures, bankruptcies and REOs; which many banks, asset liquidators, buyout firms and investors are now needing in greater volume.

For a property in foreclosure, lenders may need to know the difference between fair market value and "quick disposition" value, to know their potential charge-off liability.

REO appraisals, although similar to a market appraisal, deliver an in depth market analysis needed to determine how a bank or investor will liquidate a property.  Banks and investors need to compare three values: As-is, as repaired, and "quick sale." These represent the value of the property without any work done to it, with the work required to make the property marketable to full market value commensurate with competing properties in the area, and, somewhere in-between, with minimal investment in repairs -- selling the property quickly, probably as a "fixer-upper."

Until recently the number of REO appraisal were minimal, but with the sub prime fall out, and lenders closing doors around the country, and with foreclosures on the rise, it’s likely Tucson Appraisals will continue to see an increase in the number of REO appraisals.