Blown up about within 1 mile previously

[Surf Cat]

Some of you on here blew me up when I mentioned I wanted to stay within a mile with my comps. Seems most of you don't adhere to that.

That's not true. All of us would like to have model match sales across the street that sold within the last 2 weeks of the effective date in every assignment.

Alas...... such is not the case. How far back in time did you go within your immediate neighborhood of the subject? Did you expand the parameters of GLA, and construction? Did you provide commentary as to why you had to leave the neighborhood due to the lack of sales? Speaking of leaving the immediate neighborhood for additional sales, was the area that you chose an alternative, competitive one with similar median sales? Or, did you have to adjust for inferior/ superior location?

The above aforementioned items is every day appraising. It appears your mentor put little effort and energy into you.

One last thing, when you point your finger at someone, you have three fingers pointing back at you.

 

[djd09]

just tell them all sales are within the same census tract...

 

[Surf Cat]

just tell them all sales are within the same census tract...

"All the sales were from the same census tract and were the best available at the time of inspection. Adjustments were derived from the quality of PDC photos, by dividing the difference of PDC measurements to that of public records, and how many steps it took to the subject from my car. All data is contained in the Appraiser's work file with no need to ask to see it".

 

[djd09]

"All the sales were from the same census tract and were the best available at the time of inspection. Adjustments were derived from the quality of PDC photos, by dividing the difference of PDC measurements to that of public records, and how many steps it took to the subject from my car. All data is contained in the Appraiser's work file with no need to ask to see it".

if they catch me in the right mood...i tell them they can select any 3 sales they like...and they can sign it

 

[Terrel L. Shields]

But they are the whiniest....

have you ever been outside a city limits or are you like Fern...afraid of the countryside.

 

[ucbruin]

have you ever been outside a city limits or are you like Fern...afraid of the countryside.

You just confirmed my opinion....

Appraisers who complain most on the AF are rural appraisers....
Reviewers this....
Reviewers that....
HBU this....
Pole barn that....
Etc etc etc....

I don't need to travel outside of the city, I just need to read posts on the AF....

Although, I did drive from Eugene to Florence and was amazed at the number of non-conforming properties along the way....
And for a moment I was reminded of the AF....

 

[Tom D]

Big urban. I feel really priveledged. I don't like going more the 3 city blocks for comps. Seen one little row home, seen them all. But yes, sometime i have to go five blocks for an odd one.

 

[Carnivore]

I am jumping in late but I have a point to make. In the lending / appraiser world we are , in my opinion are experiencing a paradigm shift in underwriting. All that means is simple terms they are seeing some uncertainty in the broader market place.

FTR these long time members didn't BLOW UP on you back then.

Some learned advice get in the habit of looking up answers to your questions first . Get used to using the selling guide and FHA 4,000.1

n the long run it doing that will serve you better. but what do I know.

 

[George Hatch]

The time/place to start preparing your reader for what you need to do on pg 2 is on pg 1 where you're summarizing your neighborhood attributes - including the composition. Then revisit that context when your summarizing your site attributes site and on the last line of the improvements section where you're commenting on the overall comparability of your subject to its neighborhood.

It's not just rural locations, either; but any atypical aspect about your SC.

A lot of appraisers in this situation use generic and meaningless boilerplate through most of pg one and then spring the distance or other big variables on the reader at the last second on pg 2. That's a mistake. The dominant theme in this SC is that the market segment consists of relatively few such properties and is thinly traded. That's why you have to expand your geographic radius. That theme should be started early in your report and repeated as necessary on the front page. Don't wait until the reconciliation paragraph of the SC to start talking about the problems you had scrounging up comps. Because by the time an unprepared reader gets to that reconciliation they are already questioning your comp selection.

 

[Tom D]

In the last bunch of years a lot of sales happening, typically there were plenty of sales within 1 mile, leave out rural. Underwitters have forgotten the when there is a low supply of sales, distance becomes a factor in use. But you now have to remember with that lender, that comment. One can note the lack of sales by looking at the 1004mc, as being a reason to go further.

But like many have said, fannie itself stated a brilliant comment about better to go distance, for a comp with less adjustments, then closer with more differences. But that's why my report has more than 8 pages from when i started, more comments about nothing.
Fannie May
Appraisal and Property-Related
Frequently Asked Questions
Updated November 2023

Q39. Are there any limitations to the distance that a comparable sale may be located from the subject?

No. Comparable sales located a considerable distance from the subject property can be used if they represent the
best indicator of value for the subject property. In such cases, the appraiser must use his or her knowledge of the
area and apply good judgment in selecting the comparable sales that are the best indicators of value, and the
appraisal must include an explanation of why the particular comparable sales were selected. This may be
especially important for appraising rural housing since rural properties often have large lot sizes, and rural locations can be relatively undeveloped.

From Freddie Mac:
Can appraisers use comparable sales that are one mile or more distant from the subject property?
Yes. The best comparables may be located more than one mile from the subject property. For all assignments, appraisers must use data and analysis to determine which are the most appropriate comparable sales. Additionally, appraisers must justify and support their decision to use comparable sales that are located outside of the subject market area. The Uniform Standards of Professional Appraisal Practice (USPAP) requires an appraiser to provide credible assignment results that are not misleading.


The myth of the one-mile rule
Once upon a time there was a story told that all properties on the comparable grid in an appraisal report had to be within one mile. This story was told and retold until many thought it was a rule: If a sold property was within a mile, it was a defendable comparable sale. No one knows where this originated, but the myth continues even today.