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But in a market that is laden with properties that were acquired by banks through a foreclosure process or sold through bank-approved short sales, it would seem difficult to ignore them. How are individual agents, real estate brokers and brokerage companies addressing this issue of which comps to use and which ones not to use? REO properties could have a host of issues that typical properties do not. A participant at the Appraiser Talk online forum noted that these are challenging times for appraisers, too, in determining which properties will best serve as comps for formal appraisals.

REO and short-sale properties, as distressed properties, may fetch less than those properties that are not in a foreclosure process and are not under any pressure to sell quickly. Even after they are listed for sale, REO properties could suffer "a significant amount of damage or vandalism (stolen copper pipes, break-ins, water pipe bursts ruining floors, etc.)" that could differentiate them from otherwise similar properties, for example, according to a post at the Appraiser Talk site. And how do agents approach a CMA for an REO or short-sale property when there aren't any other REO or short-sale properties in the neighborhood?