ASB Votes for Three Years Sales History

[Doug Smith SRA]

On June 11, the ASB reportedly voted to raise the sales history requirement to three years for all properties. Residential appraisers beginning in January 1, 2003 will have to go back three years instead of one. :twisted:

This change was unexpected as the Second Exposure Draft included retaining the one year requirement.(With a proviso they might vote for three).

My point. If you did not respond to the ASB with comments about sales history, don't start belly aching now about it. Live with. Essentially you got the USPAP you deserve.

Now start contacting your MLS and get them ready to keep sales records for up to three years. We will also be making more trips to the courthouse. Scope out a good parking place. Montana is a non-disclosure state as are seven others so this will be a challenge.

 

[Joe Birrell (NY)]

Guess I'll open up a title search company while I'm at it.

 

[Dave Doering]

As a regulated profession, I see this as just an additional cost of doing business (properly and according to the mandates of the regulators). However, as was the case with the enactment of USPAP and Regulation R-41c before it, such additional responcibilities and requirements represent an additional pricing point that all appraisers should consider in their fee structure. In essence, this is requiring the appraiser to do a title search for not only sales in MLS but transfers recorded in the public record. I think it was Albert Einstein's second theory of relativity was T = $ or time is money. Our fees should reflect the time and effort required to develop a competent appraisal.

 

[Anonymous]

If this stupid regulation is real we must insist that all AVM's and computer zappo appraisal substitutes comply as well.

 

[Farm Gal]

I see no major impediment to my business due to this ruling, simply a need to address WHAT I did in my scope of work...

My primary county has fairly good recording, and if a sale occurred it should show up on the ICS, if for some reason it does not , I have a dated document which indicates I did due dilligence, as should it not appear there, it would not usually be avaible in the county clerk recordation either!

"Search for prior sale of subject and comparable was limited to perusal of the county appraisers sale history record."

Done!

 

[Kelleen Hellmann]

Here in MD were have for the most part reliable
tax records which indicate prior sales. I, like
I'm sure everyone else pulls them on all comps
as well as the subject. I like to verify the
information on MLS and find discrepancies more
than I'd like. Usually its the MLS because a realtor
or realtor's assistant got "too busy to check the file"
before inputing the final 'after settlement' data
because they are on to the next sale, like they just
kinda round the sales price 8O or forgot about that
$10,000 seller bonus...not all agents of course work
in this manner and I don't say this nasty, I have a sales
person license too. It makes sense to me to check prior
sales beyond the required one year, far out price differences
can tell you somethings up and you need to know what that
is.

 

[Don Clark]

8)

Doug,

OK, I confess. I did it. I did write and express my opinion to the ASB that I believe 3 years prior sales on residential are as important as searching a 3 year history for non residential for the following reasons:

1. Fraud 2. Flipping schemes 3. Turnover of a property many times in a period of 3 years with straw buyers 4. Market trends for certain properties, i.e., I have appraised several units in a Condo where the value has declined 13% over time(more than 5 years) from date of original sale. I could go on but I think my point is made. Guess I am very fortunate, our MLS, which is not operated by the Realtor Association but is a private corporation, goes back well over 5 years as does there link with a public record data base. I know some folks in the boonies will have a hard time but I believe we should report any significant prior sale, and 3 years may not even be long enough in some cases.

Don

 

[Jo Ann Meyer Stratton]

I didn't write the ASB but I am very much in favor of the three year history. I report the last sale for my subject and all comparables whether is was last week or 196 or somewhere in between. I also includ several sentences in my addendum after I have describe each comparable in its own paragraph. I describe the listing history of each comparabe. For example: Comparable was on the market for three months by owner with an original asking price of $95,000 reduced to a final asking price of $90,000. Property was then listed with a realtor for 2 months with an original asking price of $89,900. After listing expired, property was for sale by owner with an original and final asking price of $65,000. Etc, etc, etc. Now the reader of the report knows why the home was on the market for a year! Also if the subject and most of the comparables all sold 5-6 years ago for $50,000 and now with only normal maintenance (no additions or physical changes) sells in the $60,000 range, that also provides some data to a reader. So I am very glad to see the new guideline. I do admit I am fortunate in AZ since we have had affidavit of values signed by both the buyer and seller filed with the transfer of ownership deed since 1968. This affidavit states the sales price, if there is any personal property involved, etc.

 

[Farm Gal]

I believe we should report any significant prior sale, and 3 years may not even be long enough in some cases.Don

I quite agree Folks who don't care to take those few minutes in my opinion weren't doing their jobs.

Unless? In other 'non-disclosure states' is it the case that even the county appraiser does not maintain those reords 8O :?:

I have a habit of reporting the last sale (if any available) regardless of long ago it was... A sentence of explanation if it is unusual in ANY way is apropriate. Certainly if there is a history of repeat sales it bears commenting on, if it was fairly recent, just consider it due dilligence!

We also have COV (Certificate of value) required to be filed by one of the knowlegable parties. Buyer seller, agent, attorney... who is certifying on penalty of perjury that they are telling the truth, dicllosing any atypical terms, arm's length issues etc... Works for me as well or better than talking to them :roll:

 

[Ben Vukicevich SRA]

Neat.....3 years for the subject??? On a residential????

More meaningless, non-sense for state boards to discipline appraisers with. Damn, we have to be the dumbest trade on earth.......

Well, at least it's going in the appropriate "book."

Ben