Comparable sales currently offered for sale in the subject neighborhood

[BR549]

I would appreciate your feedback on this. Top of page 2 is the question "comparable sales currently offered for sale..) and next is "comparable sales....within the last 12 months...)
My question is do you use pending sales on line 1 where it asks for ..currently offered...?
I have been for the last 20+ years only using active listings for the first line. However in a recent report I got a kick back saying my pending sale (comp 5) did not fit in that range. It did not fit in that range because the search was for active listings. I did some research and got the following from AI "Under Fannie Mae Selling Guide, "offered for sale" refers to active listings. A pending sale is under an accepted contract and is no longer being actively offered on the market. [1, 2, 3]"
However I can not find an actual Fannie Mae or USPAP reference to support my decision to use active listings only in this section of the URAR. I could be wrong, I have been schooled before lol. SO I ask you my peers what are your thoughts? Thanks. PS I did comment on the revision and explained the search was completed on active listings, but the comparable clearly was within the range on solds as well as the overall range on page one. They came back and said not good enough, so my choices are to either re-run the search including pendings with the actives or just simply remove the comparable which was given no weight in the analysis. I appreciate all your feed back. .Thanks

 

[J Grant]

I would appreciate your feedback on this. Top of page 2 is the question "comparable sales currently offered for sale..) and next is "comparable sales....within the last 12 months...)
My question is do you use pending sales on line 1 where it asks for ..currently offered...?
I have been for the last 20+ years only using active listings for the first line. However in a recent report I got a kick back saying my pending sale (comp 5) did not fit in that range. It did not fit in that range because the search was for active listings. I did some research and got the following from AI "Under Fannie Mae Selling Guide, "offered for sale" refers to active listings. A pending sale is under an accepted contract and is no longer being actively offered on the market. [1, 2, 3]"
However I can not find an actual Fannie Mae or USPAP reference to support my decision to use active listings only in this section of the URAR. I could be wrong, I have been schooled before lol. SO I ask you my peers what are your thoughts? Thanks. PS I did comment on the revision and explained the search was completed on active listings, but the comparable clearly was within the range on solds as well as the overall range on page one. They came back and said not good enough, so my choices are to either re-run the search including pendings with the actives or just simply remove the comparable which was given no weight in the analysis. I appreciate all your feed back. .Thanks

They are nitpicking. Save yourself time and trouble; just remove the pending sale.

 

[TerryRohrer]

You had it right. I would put it back to them and ask them to cite the specific requirement that pending and contingent sales are specifically identified as being offered for sale with respect to that field.

 

[Mike Ault]

AI Overview

Yes, pending sales should be included in the active listings count. Lenders like Fannie Mae require this combined metric to accurately establish absorption rates and market momentum on the form The RPR Guide to Market Trends and Housing Stats. [1]
The reason for this lies in the mechanics of real estate reporting and underwriting guidelines:

• Fannie Mae & Freddie Mac Guidelines: Underwriting forms—including the URAR (Form 1004) and the Market Conditions Addendum (Form 1004MC)—ask for the total number of listings and the number of active listings to understand neighborhood supply and demand Market Conditions Addendum to the Appraisal Report File No.. Appraisers are required to consider both closed sales and current pending/active contracts to determine if the market is oversupplied, in balance, or facing a shortage Uniform Residential Appraisal Report. [1, 2, 3, 4]
• Absorption Rate Metrics: Pending contracts divided by active listings provides a real-time indicator of how fast properties are selling Pending Sales in Real Estate | Worthington Realty. [1]
• Appraisal Best Practice: Combining both categories at the top of Page 2 (in the Neighborhood section) helps paint a clearer picture of market health. To ensure clarity for underwriters, many appraisers list this data as a compound figure (e.g., "5 Active / 2 Pending") in the appropriate input lines rather than just lumping them together without explanation How Do Appraisers Use Active Listings and Pending Sales In ....

 

[BR549]

Thanks J Grant, that is where I am leaning toward, but it just irks me, and I wanted to get as many thoughts as possible, not only to answer this "correction" but how to proceed in the future. I appreciate your response.

 

[BR549]

You had it right. I would put it back to them and ask them to cite the specific requirement that pending and contingent sales are specifically identified as being offered for sale with respect to that field.

Thanks Terry

 

[BR549]

AI Overview

Yes, pending sales should be included in the active listings count. Lenders like Fannie Mae require this combined metric to accurately establish absorption rates and market momentum on the form The RPR Guide to Market Trends and Housing Stats. [1]
The reason for this lies in the mechanics of real estate reporting and underwriting guidelines:

• Fannie Mae & Freddie Mac Guidelines: Underwriting forms—including the URAR (Form 1004) and the Market Conditions Addendum (Form 1004MC)—ask for the total number of listings and the number of active listings to understand neighborhood supply and demand Market Conditions Addendum to the Appraisal Report File No.. Appraisers are required to consider both closed sales and current pending/active contracts to determine if the market is oversupplied, in balance, or facing a shortage Uniform Residential Appraisal Report. [1, 2, 3, 4]
• Absorption Rate Metrics: Pending contracts divided by active listings provides a real-time indicator of how fast properties are selling Pending Sales in Real Estate | Worthington Realty. [1]
• Appraisal Best Practice: Combining both categories at the top of Page 2 (in the Neighborhood section) helps paint a clearer picture of market health. To ensure clarity for underwriters, many appraisers list this data as a compound figure (e.g., "5 Active / 2 Pending") in the appropriate input lines rather than just lumping them together without explanation How Do Appraisers Use Active Listings and Pending Sales In ....

Thanks

 

[shrubberyvaluation]

I just do active listings.

 

[J Grant]

AI Overview

Yes, pending sales should be included in the active listings count. Lenders like Fannie Mae require this combined metric to accurately establish absorption rates and market momentum on the form The RPR Guide to Market Trends and Housing Stats. [1]
The reason for this lies in the mechanics of real estate reporting and underwriting guidelines:

• Fannie Mae & Freddie Mac Guidelines: Underwriting forms—including the URAR (Form 1004) and the Market Conditions Addendum (Form 1004MC)—ask for the total number of listings and the number of active listings to understand neighborhood supply and demand Market Conditions Addendum to the Appraisal Report File No.. Appraisers are required to consider both closed sales and current pending/active contracts to determine if the market is oversupplied, in balance, or facing a shortage Uniform Residential Appraisal Report. [1, 2, 3, 4]
• Absorption Rate Metrics: Pending contracts divided by active listings provides a real-time indicator of how fast properties are selling Pending Sales in Real Estate | Worthington Realty. [1]
• Appraisal Best Practice: Combining both categories at the top of Page 2 (in the Neighborhood section) helps paint a clearer picture of market health. To ensure clarity for underwriters, many appraisers list this data as a compound figure (e.g., "5 Active / 2 Pending") in the appropriate input lines rather than just lumping them together without explanation How Do Appraisers Use Active Listings and Pending Sales In ....

AI is not always correct with regard to the details of appraisal bureaucracy.

As far as I know, on the MC form, which is what goes on the URAR for market conditions, Fannie wants actives and solds, but not pendings. Personally, I consider pendings as part of properties that are still on the market, but my personal opinion does not matter if we have to comply with a certain metric.

 

[Surf Cat]

However in a recent report I got a kick back saying my pending sale (comp 5) did not fit in that range.

It appears to me, that this is not about the number of active listings or sold sales, or which line does the pending sale go, it's about the listing price of the pending sale being outside the range of your gross and/or your adjusted sales.