John, you might also concider a 4 or 5 or 6 comp that are current or under contract listings that are of similar age. If they are under contract call the agent and find out when the closing date is, if they will tell you the selling price, type of laon, seller concessions if any and add this info to the report. Fannie Mae guidelines indicate that you can use current listings as a 4th, 5th or 6th comp. This gives the underwriter the opertunity to see what is selling of similar age and may also help you with the age or condition adjustment. If the area has seller concessions, I take the average and deduct that from the list price, this may not help your value but helps the underwriter to understand the sub area of similar appeal, size and design homes. Also explain in your addendum the reason for using newer homes, (lack of recnet sales of similar size, design, age and appeal of homes within the subject's immediate marketing area), which also will explain the use of current or under contract listings. You might also concidering broadening your search area and you can you comps that are over 12 months old. I personally would never use a newer comp against a home that is 35 years old, I would search until I found better comps, even if they were dated sales. I say this because a typical buyer looking at your 35 year old home would not probably look at the newer home, unless it fits within their price range. Put yourself in the position, that it is your money used to lending on this property. Then do a gut check, would you lend on this property with these comps and info given and do you feel that your opinion of value is an accurate essement of the market area. If you feel that it is not, then you can understand why the underwriter will not and have it reviewed. I usually bracket my age and condition adjustment so double dipping does not occure. If the older home is updated and I am giving it a similar condition to that of the newer home, then I give an age adjustment because of the things that Nancy mentioned earlier.
