How long the comps we can go back?

[David S]

Just get an purcahse loan assignment in. The contract price is high. I only find one comp sold in Jun, 2022 with such high price. I was heard we can't use the comp more than 2 years ago, even with time adjustment? Can someone confirm that?

Also, per ACI system, the final appraisal value must be bracketed within comps' price range. Is it true? Thanks!

 

[Bill75]

Just get an purcahse loan assignment in. The contract price is high. I only find one comp sold in Jun, 2022 with such high price. I was heard we can't use the comp more than 2 years ago, even with time adjustment? Can someone confirm that?

Also, per ACI system, the final appraisal value must be bracketed within comps' price range. Is it true? Thanks!

Are you drunk...

 

[Dublin ohio]

Are you drunk...

One can only hope

 

[sputnam]

Who told you that you can't use older comparables? You have to use the comparables that exist. We really aren't supposed to make them up (although I have seen a report with made up comps). In Sales Comparison Analyais, your job as appraiser is to use the most proximate, most recent, and most similar comparable sales you can find in order to arrive at an indication of value. PERIOD.

The real world is messy sometimes. You can't always find three sales that meet guidelines. What you do is do the best, most professional work possile. Sometimes that means your comps suck. When that happens, it happens. You provide additional comments explaining and documenting the extent and depth of your research. You may decide include some really bad comparables along with your one good one. Once you've done that... really done it.... you've done your job. The Lender decides if that property is worth the risk of the loan. Not the appraiser.

I'll add to that... when I've heard an appraiser say 'There are no comps.', they are usually wrong. What they mean is.. 'there are no good comps'. Experienced appraisers have seen and dealt with 'no good comps' over and over and over.

 

[J Grant]

Just get an purcahse loan assignment in. The contract price is high. I only find one comp sold in Jun, 2022 with such high price. I was heard we can't use the comp more than 2 years ago, even with time adjustment? Can someone confirm that?

Also, per ACI system, the final appraisal value must be bracketed within comps' price range. Is it true? Thanks!

We can use comps for more than a year, but we should provide a reason. If the only reason is "I had to go back two years to match the high price"- not the best reason - whereas if your subject had a special feature and the only comp with that feature was two years old is a reason to use it.

If you use that high-price sale, you would need a downward time adjustment because mid-2022 was a super hot market with bidding wars.

Your subject might appraise under the contract price.

 

[sputnam]

We can use comps for more than a year, but we should provide a reason. If the only reason is "I had to go back two years to match the high price"- not the best reason - whereas if your subject had a special feature and the only comp with that feature was two years old is a reason to use it.

If you use that high-price sale, you would need a downward time adjustment because mid-2022 was a super hot market with bidding wars.

Your subject might appraise under the contract price.

Yeah... if you are searching for comps based on the contract price.. you are doing it wrong.

 

[Zoe]

Always focus on the subject property. The subject real property is your best friend in solving the problem.

 

[Zoe]

OTOH, I like to bracket the sales price even if I have to use something and make huge adjustment somewhere else. I am same way on GLA. Bracketing is always best if you can. Don't worry about the time. Time adjustment..........you can do. .......a/k/a market condition adjustment.

Just don't skip a more recent sale that brackets what you want to bracket.

 

[Zoe]

I'll throw this question at you for fun. Do you ever break 15% net on adjustments or 25% on gross adjustments?

Do you ever do rural properties?

 

[Elliott]

Are there sales in adjoining counties similar to the subject that are more recent?