Can I use subject as 4th comparable?

[AngelEyes359]

Can I use the subject as a 4th comparable for an FHA appraisal if the subject has previously sold in the past 12 months? I have done this for conventional appraisals before and always cited the passage from the selling guideline that states this is allowed.

 

[Dave Fitch]

Sure, why not?

 

[AngelEyes359]

As a follow up question, can I use a comparable sale that is over 12 months as a 4th comparable in a FHA appraisal? My subject is very small house and nothing as small has sold recently in its town.

 

[Metamorphic]

As a follow up question, can I use a comparable sale that is over 12 months as a 4th comparable in a FHA appraisal? My subject is very small house and nothing as small has sold recently in its town.

I did exactly that 2 weeks ago. Actually it was about 22 months old, and I really needed it due to a unique lot size and a super-adequate pool house.

As long as you do the market research to understand the depreciation/appreciation since the last sale and of course the "arms-length" verification, it ends up being an excellent comp, well worth being given significant weight.

 

[huntercharlie]

Per USPAP yes, Q&A #195.

I don't have the reference in front of me but I'm 99% sure FHA has stated that the subject can property can be used as long as it's not one of the first three comps.

 

[Michigan CG]

As a follow up question, can I use a comparable sale that is over 12 months as a 4th comparable in a FHA appraisal? My subject is very small house and nothing as small has sold recently in its town.

Yes.

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[sputnam]

Of course.

 

[Meandering]

As a follow up question, can I use a comparable sale that is over 12 months as a 4th comparable in a FHA appraisal? My subject is very small house and nothing as small has sold recently in its town.

Yes, if you explain the heck out of why you are using it. When absolutely necessary you can, and you can call the HOC and explain in advance of sending the report. The entire world does not fit into the little boxes FHA has drawn and they know that, but will not relax their requirements which might be a good thing, But they can wave a requirement based on circumstances. Call the HOC, it's free, and explain it to them, cite their response in your report, because they are going to ask for the case number and will log your questions when you call.

 

[The Warrior Monk]

I am not familiar with FHA regs and guidelines, but the long and short of it is that an assignment condition cannot include the exclusion of relevant data. They might have guidelines on how they would like to see this data presented; others can help with that.

 

[Pittsburg_22_m]

I've done this maybe once or twice as a 5th or 6th comp. You can do it, I wouldn't recommend it unless you're desperate.

I can't remember the time I only had 3-4 comps in a report. Srsly.