Comparables In A Different State

[tpoettker]

I have a review order. The order is for a property in Missouri. The OA used comparables in Missouri which could be acceptable. However, OA also included some comparables in Illinois. Looking further, the OA is not licensed in Illinois. Is that a problem?

 

[RSW]

Not from the license stand point. The appraiser is licensed to appraiser in the State where the subject property is located, correct? It really does not matter where the comps. are located. He is not appraising the comps..

 

[Michigan CG]

I can think of few reasons to cross a state line for a RESIDENTIAL assignment considering they would be in different states and school districts, taxes are very different in those two states and they are separated by the Mississippi River.

If it is commercial then there is no problem with using comps from different states if they are applicable. The appraiser does not need to be licensed in a state to use a comparable from that state.

 

[residentialguy]

Sometimes it's necessary

 

[Terrel L. Shields]

It can be common practice here between MO, AR, and OK. The reason is the lack of properties in the three states where they meet. But normally, I would be able to find sales of conventional houses, land, or farms within the state. But Poultry farms, dairies, large ranches, etc. do compete across state lines. Same with specialized property like churches, mega warehouses, small airport hangars, etc. But for residential property? It would have to be a very unique property before I would not confine myself to the same state...if close enough to a county line within the state, then perhaps I'd view it differently. Since some of our school districts cross county lines, I would, in particular view them favorably.

I always wondered how the heck you would appraise property in that narrow panhandle of N. West Virginia though... Go to Ohio? or PA?

 

[Peter LeQuire]

Appraising very high dollar houses in this region may very well require crossing state lines to find sales of reasonably competitive properties.

 

[Meandering]

Appraising Riverfront property Might be a really good reason to cross the river.
Especially if used as comps 4+ but not for comps 1-3.

.

 

[timd354]

Appraising Riverfront property Might be a really good reason to cross the river.
Especially if used as comps 4+ but not for comps 1-3.

.

I recently saw an appraisal report for a property located on a lake that is on a state border and two of four comps were from the other state....the appraisal report included a very detailed narrative explanation and appeared to be a credible report.

 

[sandpiperapp]

Do buyers for this type of house and location look in both states?

 

[Terrel L. Shields]

Do buyers for this type of house and location look in both states?

That would be the question to ask. I know a number of people who bought "across the line" because land was cheaper. A friend sold 80 acres near Walmart...covered in houses now. Bought 300 acres of ranch with twice the house they had for the same price 60 miles away in OK.