Using Subject Prior Sale As Comp

[workinglate]

I have an appraisal I used the subjects prior sale as a comp. It sold arms length last month for cash. The lender came back with this today...

I spoke with my manager today about this appraisal (this is the AMC telling me this) and he informed me that per Fannie the subject property cant be used for the primary comparables (comps 1-3) but it can be used for the secondary comparables (comps 4+). Please switch out the subject property and move it to the secondary spot. Thank you.

So when putting comps in I was always under the assumption (also read of a discipline action against an appraiser for not putting best comps first) that the best comps would be first.

Since when does fannie want comps in a certain order??

If I am wrong please correct me but I am struggling with the stuff this AMC demands.

Thanks.

 

[gregb]

AMC is correct in this instance, so long as it is a fannie assignment-

https://www.fanniemae.com/content/guide/selling/b4/1.3/08.html

 

[Riick]

Deleted ...........

 

[miktay]

Fannie says: "Selection of Comparable Sales: The APPRAISER is responsible for determining which comparables are the best and most appropriate for the assignment. Fannie Mae expects the appraiser to account for all factors that affect value when completing the analysis. Comparable sales should have similar physical and legal characteristics when compared to the subject property."

I have had the same request as you. I simply changed it to C4 and that hushed them up.

 

[J Grant]

(also read of a discipline action against an appraiser for not putting best comps first) that the best comps would be first.

I can not fathom a disciplinary action for not putting best comps first, as USPAP has no such mandate.

Follow Fannie Mae guideline on this one..they are funding the loan so if they want subject former sale as a comp in fourth position, just put it there.

 

[workinglate]

Got it thanks guys.

 

[Terrel L. Shields]

There is no requirement to place a comp in a particular order, and typically I might place the lowest priced first or the highest priced first without respect to whether it was the best sale or not. It doesn't matter, and yes, fannie says not to use as a primary comp.

 

[hastalavista]

There is no requirement to place a comp in a particular order, and typically I might place the lowest priced first or the highest priced first without respect to whether it was the best sale or not. It doesn't matter, and yes, fannie says not to use as a primary comp.

Ditto the bolded. Out of habit, I'll typical order the comps by COE date (the most recent is the first), then pendings, then listings. However, I do deviate from this in some situations to emphasize a certain comparable.

 

[TN Pro]

Im pretty sure Fannie says yes it can be used, but should be in 4,5 or 6 position.

 

[Peter LeQuire]

"The subject can be used as a fourth comparable sale or as supporting data if it was previously closed."

-FNMA Selling Guide, pp. 619, 620