@Sam Josh  Actually as it relates to the SF bay area the worse crash since the depression was NOT 08 it was 89 to 1991.you had 50% devaluation of real estate in many parts of the bay area SF included.. in 08 you only had 10 to 20% price roll back in SF and peninsula..

Home inspectors will give you insight into things that normally can devalue a home.

Either market is expecting wage inflation leading to rising rent (following walmart announcement ) OR appreciation via dollar devaluation.     

Don't discount your commission - you will only devalue your services in the eyes of the client.  

The Chinese government devalued their currency.

Some might devaluate the building cost to reduce permit fee, well, you know how that goes. 9 months just building alone, around $130-160/sq.ft. for me, simple and basic, granite tops, carpet and laminate floor, custom stained cabinets, asphalt shingle.

But this is not true asset appreciation as much as it is currency devaluation.

Currencies can be devalued.

I'd then multiply that number by 10 to get your devalued STARTING POINT.

This may just be a Wells Fargo policy (all of my deals were auctioned by WF); they evidently offer cash for keys after foreclosure so their Asset Protection army can secure the place to prevent further deterioration and devaluing.