Requirements & Procedures
The assessor must carefully evaluate the impact to the local real estate values. Assessors and appraisal professionals normally do not use sales from lending institutions to value property. The lending institution is motivated to sell quickly and, therefore, would typically sell at a discounted price. Other factors such as condition of the property at time of sale could be a factor if the property has been vacant for a period of time.
The increased number of foreclosures and the tightened lending standards impacts values by increasing the number of properties offered for sale, decreasing the number of people who can obtain financing, and potentially lowering sales prices. As the real estate market reacts to these foreclosures, assessors will continue to monitor the impact on local real estate values.