Refi Question - Will 2 Recent REO Sales drop my appraisal that much?

[snkblls]

Hi All,I purchased my home 6 month ago in the Silicon Valley and is considering my 1st refi. I reviewed sales within 2 months and 1 mile radius of my home shows that all sales are pretty normal and reasonably close to my purchase price, except for 2 recent REO sales. They sold for about $100k less than mine. One of them sold 2 months ago and another sold 1.5 months ago. These 2 REO are pretty much the same configuration as my home and are just a few houses down.How should I expect the appraisal to utilize these 2 REO's in the valuation process?John

[Evan Bedard]

Hi All,I purchased my home 6 month ago in the Silicon Valley and is considering my 1st refi. I reviewed sales within 2 months and 1 mile radius of my home shows that all sales are pretty normal and reasonably close to my purchase price, except for 2 recent REO sales. They sold for about $100k less than mine. One of them sold 2 months ago and another sold 1.5 months ago. These 2 REO are pretty much the same configuration as my home and are just a few houses down.How should I expect the appraisal to utilize these 2 REO's in the valuation process?John

If you just recently purchased the home 6 months ago the property value should be about the same as when the loan was acquired.. Even with the two recent REO sales it should not have much of an affect on your property's value.. Homes sold through foreclosure are almost always purchased at a major discount..