Dear AC, regarding REO comps (general)

by Sloth, Thursday, January 17, 2008, 18:04

In an earlier post you wrote:
"Ameriquest recently began instructing appraisers:
* PLEASE NOTE: If the market has a significant number of REO sales and REO listings and these properties are competitive properties to the subject, then REO sales and REO listings should be included in the report. The final value conclusion should reflect this REO influence, if such an influence exists."

I am doing a 1004 and do not have enough arms-length comparables in this declining market and I am going to use some REO sales and listings as comps. To reflect the REO influence in the final value conclusion do I a) make an adjustment in the sales grid under "sales or financing concessions", b)use one of the 3 blank spaces at the bottom of the grid and write "REO influence", or c) just weight each comp due to its REO or non-REO influence? And what is the best way to measure or determine the "REO influence" in each particular market?