Can Value Be Higher Than Highest Comp?

[moh malekpour]

Steve,
You didn't read my previous post that I mentioned your point.

First, you got to find out if your subject is a typical property or a unique property. If you are dealing with a unique property with no similar one in the area at all, you can deviate from normal procedure for your value conclusion because the subject is not a typical home. If you are dealing with a typical home but with some expansion, modification and you don’t have comps to support the improvements, you have two possibilities for that:

Sure, if the property is not typical property say it is a unique, custom built, special use then you got to get out of gudeline but my point here was for a typical property that has been so over improved in a neighborhood with no market acceptance or desirability that you cannot find a support for that extra improvement. If appraisr come up with a non supportive value above and beyond the highest comps in the neighborhood, it is not appraiser opinion, it is appraiser whim.

 

[JSmith43]

Moh: If not for supplemental standards, where in USPAP does it say three comps are necessary on the report part of an assignment?

Roger, you already answered your own question. "If not for supplemental Standards". You know that compliance to Suplimental Standards are part of USPAP, why do you exclude that?.

I was responding to Moh's earlier comment he made as follows:

Regardless of FNMEA, guidelines or underwriter, you still need to do bracketing and you still are supposed to have at least 3 comps. Those 3 comps that you put in the grid are not for ritualistic purpose, there is a reason for it and that is to show the readers of the appraisal why the subject value should be x amount.

Moh, I believe you didn't intend to say what I thought you said :rofl: I took your statement above as a declaration that 3 comps were needed in a report even if the appraiser was not required to follow Fannie guidelines or pass by the eyes of an underwriter. I could have sworn that is what you meant

But, just in case you ever get, say, a private assignment, sometimes 2 comp sales will do quite nicely. Sprinkle with a few competitive listings, blend in pendings and bake for 2 hours at 350 degrees.