Review --- Placement of Listings

[timd354]

I don't know why an appraiser would do it that way, since it would cause a reviewer to question the report, but it does not appear to be prohibited by the Fannie Mae guidelines. Nowhere in the Fannie mae guidelines is it specified that the comparables must be presented in any particular order. I list closed sales first, followed by pending sales, followed by active listings.....this order just makes sense to me and I believe it would make sense to the reader of the report, but it is not required by the guidelines.

 

[Papa Charlie]

I don't read anything in paragraph four that says the appraiser got it wrong. Unless there's another reference I guess I'll leave it at that.

 

[timd354]

I don't read anything in paragraph four that says the appraiser got it wrong. Unless there's another reference I guess I'll leave it at that.

You are to be congratulated for performing your review using the actual guidelines as opposed to allowing your personal biases affect your review.

 

[CCAAMO]

Listings can be used as a supportive comp but not as a primary 1, 2, 3 per Fannie Mae guidelines.

I just reviewed one that used a listing as the third comparable and then comparable #4 was a closed sale. It appears they wanted to include the listing to justify appraising the property above the unadjusted sales prices of the closed comparables.

To answer your question, the short answer is no.

 

[timd354]

Listings can be used as a supportive comp but not as a primary 1, 2, 3 per Fannie Mae guidelines.

Would you care to refer to the Fannie Mae guideline that states what order that the comparable sales appear in the appraisal report.....I cannot find any such guideline.

 

[Mztk1]

I think the closest you will find is what Dave pointed out.

Obviously Fannie is making a distinction between supporting data used/fourth comp as opposed to the first three sales when it states you cannot use the subject, if it closed earlier, as one of the first three sales.

Whereas I don't think it is a leap to extend that to the listing and pending sales, and whereas I would never use a listing or a pending as comp #1, #2 and #3 in a mortgage appraisal, I think in a review you sometimes have to pick your fights and this one may not be worth arguing over. As long as the appraiser did not give any weight to the active or pending sales (other than as a cap on market value), I'd let it go.

 

[Mark Leith]

Papa...

Bottom of page D-6 of the 4150.02..

"Only closed (settled) sales may be used as comparable sales 1, 2 or 3. If a sale is over six months is used, an explanation must be provided."

Is that what you are looking for??

Mark

 

[David Dietz]

Furthermore the form states Comparable Sales at the top not Comparable Sales or listings.

 

[Mztk1]

Mark: That is FHA not Fannie

David: The additional Comparable Page of the form says the same thing.

 

[David Dietz]

Right, that is why you use the listings page.