The last three years have been an interesting ride for most Seattle condo watchers. When the market started slowing down in the fall of 2008, a lot of people believed (in retrospect, hoped) that the slow down in prices was just a small correction. However, when prices continued to slide over the next few years, condo owners were and still are faced with a tough decision of either holding on, renting the unit out, selling it at a loss, or short selling.
With a higher proportion of shorts sales and bank owned properties on the market versus four years ago, we are seeing a split value in comparable data from the distressed and non-distressed properties. Pricing your condo correctly today has become more critical than ever. This important job lies mainly with your Realtor (assuming you're not doing it DIY). If you have a buyer for your home, will it pass the buyer's bank appraisal? How are appraisers valuing properties in this market and what has changed?
I interviewed two appraisers who shared their perspectives. This may be worth taking into account as you select what pricing strategy to use for your condo.