Sometimes there are some questions with Baltimore appraisals, and a big one has to do with short sales and foreclosures and whether they are used in comparisons with regular home sales.

Short sales and foreclosures are “distressed” properties, often times in lesser condition than their surrounding regular homes.

So why do appraisers need to take them into consideration when appraising a property?

If there appears to be a trend happening in the area, then it is an indication that the value of the subject property may drop. The more short sales and foreclosures around a house, the harder it will be for an appraiser NOT to use them.

Here are more details from The Appraisal Institute and The Appraisal of Real Estate, 13th Edition, and shared by The KCM Blog on 2/7/12.

In October, I answered a question, “Why did my appraisal come in low?” Short sales and foreclosures definitely can be a part of that issue, if there are multiple sales at a lower price around the subject property.

So, yes, short sales and foreclosures may affect your Baltimore home’s value, if there are a number of them in the area.

To find out more about your Baltimore house value, please contact me. I would love to help!