Of course... I do not know where the idea to punish people who pay their house payments by using Foreclosure Sales as a comp came from but that idea should be replaced.
I have no control over my neighbor paying his bills so why should my property value be the same as his if banks are willing to take less, that should be their cross to bare not mine, I didn't loan them the money.
Aprraisal value should be judged on condition and upgrades alone just like insurance replacement values. This would reward home owners who take good care of their homes and those that don't won't make as much money off their investment.  Even Location should not be as much a factor as condition, a nieghborhood may be very desirable now but in the future it very well may not be or just the opposite. Supply and demand use to be the main factor but with the current system it get little attention.
The system now allows that if there have not been sales in the area for the past 6 months the whole area can be consider depressed!! Who came up with the bright idea?? I don't want to sell while the market is low and neither do my nieghbors so we loose value on our home, one of those Damned if you do and Damned if you don't deals where no one wins!!  Unless you have no intension of moving, then you like not paying the higher taxes.   Cities should put a stop to this activity because they are loosing money !!
Would it not make more sence to not use Foreclosure properties at all for comps, that way sellers who are paying their bills are not punished and property taxes stay where they are instead of being lowered.  I would bet we would come out of this reccession a whole lot quicker.  Just a suggestion..