FHA Requires 2 Sales That Support Value?

[J Grant]

Try doing an appraisal in one of the counties I do some, very little, work in, in Camden County, North Carolina. There isn't even a real town in the entire county. There are some new subdivisions but they are so new that there are few sales. So......................a comp may be next door or 12 miles away. I notice what Mike Kennedy refers to the "market". Gee, I though it was all about the "Neighborhood".? In some cases, like the one I just cited, the entire county is the market and the neighborhood.

I am not arguing with you on that, and the cert 4 is not limiting what the market area is either. If you can show that an entire county is the market and the neighborhood, then your sales data from that larger area will certify cert 4.

 

[Mike Garrett RAA]

here is comes......ANOTHER FINE REASON!

 

[residentialguy]

"4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report."

The above from cert page URAR.

You keep posting this. What does this have to do with the OP?

 

[jay trotta]

A fruit cup of information (JG) and who is it that determines; what defines adequate market data, the Big Data Machine ?

 

[Mr Rex]

Who says a comp value has to meet or exceed the opinion of value "to support" the value?

 

[residentialguy]

Who says a comp value has to meet or exceed the opinion of value "to support" the value?

Exactly!!!

 

[ROBERT JONES]

I spoke to Philly HOC - No such requirement. The person I spoke to was an appraiser and gave me this - If the UW does not like the value they can fill out HUD Form 54114 and supply their own opinion of value with the comps and justification of why they feel the report is deficient. The assignment can not be limited by such conditions, such conditions would need to be divulged in the engagement. However, that type of order would need to be declined, as the assignment conditions cannot limit the appraisal process. She said as long as the value is bracketed, and there is commentary in the reconciliation as to why you were on either end of the scale, that is all that is required.

 

[residentialguy]

She said as long as the value is bracketed

What does that mean?

 

[J Grant]

A fruit cup of information (JG) and who is it that determines; what defines adequate market data, the Big Data Machine ?

The appraiser is but if appraiser is seen by others to have failed ( others can be reviewers, UW or other users such as Fannie or FHA ), then additional data or another appraisal might be requested.

 

[CANative]

What does that mean?

Inside the range of sale prices and adjusted sale prices?