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  #1  
Old 10-13-2010, 09:52 PM
YFA72 YFA72 is offline
 
Join Date: Jul 2010
State: Florida
Professional Status: Certified Residential Appraiser
Posts: 22
Default Client demands a HUD1 for each Comp. . .

“1.) Appraiser to state he also reviewed the final hud I settlement stmt from the builders file for each sale"

- Client sent this request after submission of our URAR 1004 Form Report.
- Subject and 2 comps are new construction. 3 other comps are resales.
- Is our response appropriate?

"Please confirm the intent of this request. To us this is a new 'never-seen-before' requirement. If our understanding is correct, the client requires that the appraiser reviews the FINAL Closing Statement (HUD1) for each comparable sale. (Presumably AFTER the closing & signed by the buyer(s) and seller(s)). While we are sometimes provided with a "PRELIMINARY" HUD1 - we are not authorized to DEMAND access to, what the principals might consider, to be a confidential document. Does this new requirement mean that we cannot use 'comps' if the SIGNED, FINAL HUD1 is unavailable, for whatever reason?
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  #2  
Old 10-13-2010, 10:02 PM
NORTON NORTON is offline
 
Join Date: Oct 2007
State: California
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Default

your question dances around the real issue, "was this requirement in place at the time of the assignment acceptance, if not, then don't expect it to be met".
  #3  
Old 10-13-2010, 10:05 PM
leelansford leelansford is offline
 
Join Date: Mar 2002
State: Illinois
Professional Status: Certified Residential Appraiser
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Default

As the appraisal was communicated, what is (are) the confirming source(s) of each of the builder sales?
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  #4  
Old 10-13-2010, 11:39 PM
YFA72 YFA72 is offline
 
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State: Florida
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Default Dancing with the stars of AF . . .

Quote:
Originally Posted by NORTON View Post
your question dances around the real issue, "was this requirement in place at the time of the assignment acceptance, if not, then don't expect it to be met".
In our area appraisal orders just ask for a 1004 URAR Form Report. As stated, it was AFTER I sent in the report that they came back with the request for a HUD1 for each comp.
So, I guess my question to you is, "Is the demand for a HUD1 as verfication of all comp sales appropriate?"
Or, my understanding is that all sales data had to be verified. So, is a demand for a review of the HUD1 typically included by residential appraisers?
  #5  
Old 10-13-2010, 11:49 PM
YFA72 YFA72 is offline
 
Join Date: Jul 2010
State: Florida
Professional Status: Certified Residential Appraiser
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Default Verification of Comp Sales

Quote:
Originally Posted by leelansford View Post
As the appraisal was communicated, what is (are) the confirming source(s) of each of the builder sales?
In this case we were provided with a copy of the contract for sale & purchase for the subject. For the comps, we had price & terms confirmation from the seller/builder, the buyer(s), the property cards & Realtor/Multi-List.
My goal is to eliminate all 'revisions' to our reports. That means accommodating and anticipating clients specific requirements. HUD1's for comps is new to me. So I'm askng is if this is known by other appraisers or just this one client?
  #6  
Old 10-13-2010, 11:54 PM
NORTON NORTON is offline
 
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State: California
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Default

I think all the lenders have really stepped their requirement(s) for verification regarding new home sales....haven't done one in a very long time but I bet somewhere in the new fannie 2010 goodies, it addresses new home sales. somebody should be chiming in soon with the exact quote(s)....good luck.
  #7  
Old 10-14-2010, 12:05 AM
Denis DeSaix Denis DeSaix is offline
 
Join Date: May 2005
Location: Northern California
State: California
Professional Status: Certified General Appraiser
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Default

This is from the current Selling Guide (Fannie Mae) (my bold):
Quote:
When appraising new construction, the appraiser may need to rely solely on the builder of the property he or she is appraising to provide comparable sales data in accordance with the requirements stated in Properties in New or Recently Converted Subdivisions, Condos, or PUDs, below, as this data may not yet be available through typical data sources, such as public records or multiple listing services. In this scenario, it is acceptable for the appraiser to verify the transaction of the comparable sale by viewing a copy of the HUD-1 Settlement Statement from the builder’s file.
By using the HUD-1 to verify a recent sale of new construction not yet available through other data sources, an appraiser may be better able to comply with the requirement that he or she must provide at least one comparable sale from the subject’s subdivision or project. The appraiser must also select one comparable sale from outside the subject subdivision or project and one comparable sale from either inside or outside the subject subdivision or project, provided it is a good indicator of value for the subject property. Both of these sales must be verifiable from reliable data sources, other than the builder. The appraiser may also provide additional recent comparable builder sales from competing projects that are not presently available through traditional data sources as long as the appraiser verified the sale through the applicable HUD-1. Additionally, the appraisal must include discussion and analysis of sales concessions and upgrades for the subject property relative to concessions and upgrades for each builder sale.

I don't know if the above describes your situation, but if so, it probably explains the lender's request.

This isn't really new, but I don't think anyone has really enforced it before.


I do think it will be enforced in the future.


(Joyce, where are you! )
  #8  
Old 10-14-2010, 12:07 AM
Eric C Eric C is offline
 
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You may have access to the HUD1 from the developers for the 2 developer sales. This used to be typical during the new construction boom in my area.

But for the re-sales, thats practically impossible.
  #9  
Old 10-14-2010, 12:17 AM
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AnonApprsr AnonApprsr is offline
 
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Default

HUD-1 procurement is only recommended as a source when the ONLY source for a transaction price is the builder, as it may not have gone through MLS, or may not be recorded yet.

If it wasn't in your original scope of work, and you didn't use them as a noted source, than you have total freedom of choice.
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  #10  
Old 10-14-2010, 12:18 AM
Denis DeSaix Denis DeSaix is offline
 
Join Date: May 2005
Location: Northern California
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Default

Quote:
Originally Posted by Eric C View Post
You may have access to the HUD1 from the developers for the 2 developer sales. This used to be typical during the new construction boom in my area.

But for the re-sales, thats practically impossible.
(my bold)

I agree it is difficult. And, for re-sales, not an explicit or implied requirement in the Selling Guide (yet... ).
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