What do you think 10 Poway is worth? Because the bank thought it was worth $838,212. Too bad no one else thought so. We will see what the bank thinks it’s worth when a RE agent can help them sell it in about 4 months.
It’s worth at least as much as the bank took it back for. I don’t even know how big it is, but based off the previous purchase price alone, I’d imagine it would retail for at least $850K, more likely $900-950K.
One could argue that it is currently worth less than the bank took it back for, as no cash buyer stepped up at that price. Had the bank priced it at the auction at $600k, maybe an auction would have ensued and fair market value been determined.One could also argue that the auction block is not a place where you would reasonably expect to ever find “fair market value.”
From an economist’s standpoint, establishing FMV requires the following:
- A knowledgeable and willing seller unencumbered by undue pressure to sell and acting in his own best interest
- A knowledgeable and willing buyer unencumbered by undue pressure to buy and acting in his own best interest
- A reasonable time for exposure in a free and open market.For these speculative investors, they likely have never seen inside the property.
For the banks, they likely have never seen inside the property.
The time period is usually about 30 seconds.
Although the auction itself lasts a short time period, hasn’t notice of the sale/auction been published for a month or more?
And haven’t most of these homes been listed for sale before the auction and thus hasn’t accesss to the interior been available?
