I am not surprised. My home was appraised at $300K a year ago, I just did a short sale for $160K. They said it was because 90 Percent of the homes in our area were foreclosed or short sale already.
Exactly the same situation for me. While my valuation for PROPERTY TAXES doesn't include foreclosures (making it higher and increasing my taxes), a valuation done to procure a home equity loan DOES include foreclosures (making it so dismally low that after the shock wore off, I sat and cried for an hour).
Most of the properties selling in my zip code are forclosures or short sales, plus I live in an area of larger homes: I only have three bedrooms and most others here have at least four, with most having 6.
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