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2 Sales Inside 90 Days

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Southside

Sophomore Member
Joined
Mar 30, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
Hello-
I have a lender stating that even in an increasing market you need 2 sales inside 90 days. My market is increasing.
I re read the handbook-page 536 states can use comps up to 12 months, but a few pages below when they are talking about declining markets they want 90 days. Now i called FHA and my area closed for today but will call tomorrow. If this is true about increasing and or declining markets then all reports would require 90 day comps as i dont remember last time a market was stable, just up or down.
Thanks
 

bart nathan

Member
Joined
Jun 9, 2005
Professional Status
Certified Residential Appraiser
State
California
https://hudgov.prod.parature.com/li...isal-requirements-for-reporting-market-trends

The appraiser must accurately report market conditions and determine when housing trends are increasing, stable or declining. The Appraiser must provide a summary comment as to the continuance of the current trend or if the trend appears to be changing, and provide support for all conclusions. If the appraiser bases the adjustment on a published source, the Appraiser must include a copy of which must be included in the addendum. The appraiser must include an absorption rate analysis, and at least two comparable sales that closed within 90 Days prior to the effective date of the appraisal.*** If the appraiser cannot comply with this requirement due to the lack of market data, a detailed explanation is required.**** The appraiser must include a minimum of two active listings or pending sales on the appraisal grid (in addition to at least three recently settled sales).
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
If no 90 day comp sales are available, just explain per above post.
 

Southside

Sophomore Member
Joined
Mar 30, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
Bart-yes seen that---, thats not what page 536 says-thats a few pages down when talking about declining markets.
also found FHA Training Mod- On page 61 it talks requirements for declining markets.

https://portal.HUD.gov/hudportal/documents/huddoc?id=appr_essential_09-14-16.pdf
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
If you don't have two sales in 90 days, how do you know that market is increasing? Remember 2007-2008 when a lot of appraisals were based on old sales and appraisers failed to recognize the downturn? That does not mean it is happening now, but you need to focus on current market conditions. I have several market areas where it is down from last summers selling season.
 

Southside

Sophomore Member
Joined
Mar 30, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
Thanks-Not talking about how i analyze the market . Simply that page 536 from handbook says one thing and pg 540 says another as well as page 61 from the HUD training mod link i supplied above which also states requirements for declining markets.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Post #5 is correct maybe your market is no longer increasing ?
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
If the market is so hot, there should be recent sales. So, it should never be a problem on an increasing market. On a declining market, the market could be dead and meeting the criteria could be a challenge.
 

Southside

Sophomore Member
Joined
Mar 30, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
Thanks, but will figure it out myself, you guys just cant seem to answer a simple question. See OP
 

Tom Woolford

Elite Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Most people, some appraisers included, are easily swayed by what they consider increasing or decreasing markets. One or two months don't make a trend. Generally I develop a 3 year moving average (or median if you prefer) using a 3 month average(JFM, FMA, MAM,AMJ etc). This evens out the peaks and gives a much more reliable picture as to declining nor appreciating. Using pendings or listings is helpful, but can be extremely misleading, particularly when sellers have unreasonable expectations, and realtors have no cajones, which is most in both cases.
 
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