3 year sales history for comps?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Frederick Mayock, Oct 12, 2006.

Thread Status:
Not open for further replies.
  1. Frederick Mayock

    Frederick Mayock New Member

    0
    Sep 11, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    Obviously, the 1004 form asks for 1 year sale history for comps. However, I remember hearing that a 3 year sale history of comps is required. Is a 3 year sales history of comps required? Is this a guidline, a rule, or an aberration of my hazy memory. Perhaps USPAP visited me in a nightmare and told me to do a 3 year sales history on comps. I hate when that happens.
     
  2. Joyce Potts

    Joyce Potts Elite Member

    3
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I don't think it has anything to do with USPAP, that's more of a FNMA guideline, but I may be wrong as I often am.

    What difference was it make and what harm is there in reporting any and all sales you can fit on the page?
     
  3. Mike Kennedy

    Mike Kennedy Elite Member

    26
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    probably a lenders' supplemental requirement - if so......comply. :icon_idea:
     
  4. USPAP Compliant

    USPAP Compliant Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Standards Rule 1-5


    When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: 14


    (a)
    analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and


    (b)
    analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal. 15



    Comment: See the Comments to Standards Rules 2-2(a)(viii), 2-2(b)(viii), and 2-2(c)(viii) for corresponding reporting requirements relating to the availability and relevance of information.
     
  5. David Wimpelberg

    David Wimpelberg Moderator Staff Member Moderator

    18
    Mar 30, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    As others have noted, there is no USPAP requirement to report the sales history of the comps. Lenders may have different requirements.

    I personally analyze the sales history of the comps simply because it can be an indicator of anything from a flip to a market trend.
     
  6. Tina

    Tina Senior Member

    0
    May 31, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Ditto David...

    Just good market research for the appraiser...doesn't need to be reported according to USPAP...

    Supplements Standards MAY be a different issue which would require research by the appraiser to determine what the actual requirements might be... :)

    TB
     
  7. Steve Owen

    Steve Owen Elite Member

    0
    Jan 16, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Missouri
    Ditto, Ditto, David.

    I go back as far as I can. If the first sale I find is four years old then that's the one I report. If that same property also sold six years ago then I look at the appreciation rate... just keep those in my head. Now there's not room for anything else in there. :rof:
     
  8. Frederick Mayock

    Frederick Mayock New Member

    0
    Sep 11, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    Thank you!

    David, Thank you for the clarity. I now see no looming USPAP nightmares lurking on the horizon. Ut-oh, my phone is ringing...

    Steven, Thanks for your common sense approach to comp sales history!

    Tina, Duly noted.

    Sincerely,
    Frederick Mayock
     
  9. Kevin Mc

    Kevin Mc Elite Member

    0
    Jun 7, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    3 years subject,1 year comps

    is fairly standard with most lenders. I'll usually include 2 years if I feel it is relevant to the market and the report. Like David stated, I deal with alot of flip markets, past sales history is very important.
     
  10. Rudy Canoza

    Rudy Canoza Senior Member

    0
    Sep 27, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I analyze 3 years and report 1 year...
     
Thread Status:
Not open for further replies.

Share This Page