REO's as comparables to non-REO

[Mr Rex]

Mentor is spot on.
It says "Appraisers may utilize sales comparables from other REO transactions" ...not should not utilize them. And even then, only a few would be considered allowable if they pass the test. Not a ringing endorsement by any stretch of the imagination.

What it doesn't say in red. along with all of Res' modifiers in pink (as close as the color scale goes here), the signal color of cancer...:mellow:

 

[JSmith43]

REX, That's pretty desperate, playing the teletubby color card.

 

[residentialguy]

What it doesn't say in red. along with all of Res' modifiers in pink (as close as the color scale goes here), the signal color of cancer...:mellow:

Talk to FHA...they're the ones that put in all the special qualifiers for your darling comps

 

[Mr Rex]

And even then, only a few would be considered allowable if they pass the test.

Can you post where that is in the protocol? I don't recall allowable or passing the test in the verbiage.

You guys keep digging for reasons to ignore the market because of some blinders on vision of the pre-printed version of market value when the folks pre-printing it tell you that you are wrong.

 

[residentialguy]

And even then, only a few would be considered allowable if they pass the test.

Can you post where that is in the protocol? I don't recall allowable or passing the test in the verbiage.

I thought you were following along. Sorry, my bad.

FHA says you may use REOs only when such sales are deemed to be the best available for the market area and they meet all of the following criteria:
• located in the subject neighborhood or reasonable proximity
• comparable property subject to reasonable adjustment
• sold with a willing buyer and seller
• exposed to the market for a reasonable period

They are only allowed if they pass that test

any more questions, Mr Pink?

 

[Mr Rex]

I thought you were following along. Sorry, my bad.

FHA says you may use REOs only when such sales are deemed to be the best available for the market area and they meet all of the following criteria:
• located in the subject neighborhood or reasonable proximity
• comparable property subject to reasonable adjustment
• sold with a willing buyer and seller
• exposed to the market for a reasonable period

They are only allowed if they pass that test

any more questions, Mr Pink?

Except maybe for your penchant for going outside the neighborhood and mayber further back in time to find "better" "typical" comps (your defintions), I don't see anything new. So yes the question is, what's your point?

 

[residentialguy]

Except maybe for your penchant for going outside the neighborhood and mayber further back in time to find "better" "typical" comps (your defintions), I don't see anything new. So yes the question is, what's your point?

On this? Same as mentors.

If you don't get it, explaining further to you will be an effort in futility at best. When you decide to actually contribute to the discussion, I'll be happy to elucidate...but so far all you've just shown is your penchant for snide hit & run jabs.

 

[hastalavista]

Mentor is spot on.
It says "Appraisers may utilize sales comparables from other REO transactions" ...not should utilize them.

If the are they are deemed the "best available", shouldn't I use them?

And even then, only a few would be considered allowable if they pass the test. Not a ringing endorsement by any stretch of the imagination.

(my bold)

If they all passed the test, why wouldn't they all be allowable? :mellow:

 

[residentialguy]

If the are they are deemed the "best available", shouldn't I use them?

Yep

If they all passed the test, why wouldn't they all be allowable? :mellow:

Silly question. That is the qualifier that needs to be met to use them.

BUT, you'll still need to adjust for any variances in value the market sees with them.

 

[hastalavista]

BUT, you'll still need to adjust for any variances in value the market sees with them.

I agree.
And, presumably, if there were no variances in value as the market sees them, there would be no adjustment. The ideal comparable.