Comment on sales over 6 months

[Vegan702]

Normally I don't comment on sales that are over 6 months old and only on sales that are over 12 months old. But I have a AMC who provided client instructions to comment on comps that are over 6 months old or over 1 mile from the subject. I did just that, but they want me to take out that the lender/client requested that I comment on this. My feeling is I would not have commented on a comp being 6 months 1 day old in the first place and the only reason I am commenting on it to begin with is in their client instructions they instructed me to comment, so I feel that since they are instructing me to comment I should attribute that comment to the lender/client and not to myself as they want. What do you all think? Am I over thinking this and should just comment that the sale is over 6 months old and leave it at that? It seems pretty stupid to just put a comment in there stating the comp is over 6 months old when anyone reading the report can tell it is over 6 months old by the sale date on the grid.

 

[Kevin Mc]

Pretty Standard Stuff.

and it has been for years. You will learn over the years that the obvious is anything but. If you do not have 3 sales on the block in the past 3 months within a couple of hundred yards from the subject, you better explain why not. Get use to discussing it(both the 6 month,1 mile scenario) in your comments section regularly. How you haven't been called out on this in the past is beyond me but it is fairly standard to make such comments despite the obviousness of it.

 

[Mary Tiernan]

Hmmm - how about including a paragraph in scope of work detailing what client has asked appraiser to do , then state under sales comments: in order to provide the most reliable indicators of value for the subject, the search was extended beyond the recommended six month guideline? Or, due to lack of sales in the past six months which are most relevant to the subject, the search was extended beyond recommended six month guideline? Don't forget to include a statement about property values- stable, decreasing, increasing, and that the market does/does not indicate time of sale adjustments.

 

[Vegan702]

and it has been for years. You will learn over the years that the obvious is anything but. If you do not have 3 sales on the block in the past 3 months within a couple of hundred yards from the subject, you better explain why not. Get use to discussing it(both the 6 month,1 mile scenario) in your comments section regularly. How you haven't been called out on this in the past is beyond me but it is fairly standard to make such comments despite the obviousness of it.

I understand the comments and use them when asked or deemed necessary, what I don't get is the lender/client not wanting me to name them as the source for my comment. They are the ones wanting me to comment about the sale being 6 months 1 day old, not me. I would normally only comment on sales over 12 months and it has been that way for the 4 years I have been doing this and I never been called out about it. The best part of this whole thing is I have done numerous reports for this AMC with the same comment used on the comps over 6 months and have always atttributed the comment to the lender/client but now they say something about it.

Mary I like your idea.

 

[TC]

Am I over thinking this and should just comment that the sale is over 6 months old and leave it at that? It seems pretty stupid to just put a comment in there stating the comp is over 6 months old when anyone reading the report can tell it is over 6 months old by the sale date on the grid.

YES


It is, but remember you're dealing with reviewers, and...well, never mind.


TC

 

[Mike Phillips]

Vegan -

6 month sale date, 1 mile proximity to subject, 10% line item, 15% net and 25% gross (last three are adjustment percentages) are STANDARD Fannie guidelines. And I mean standard - accepted/EXPECTED nationwide. Every appraiser I know has been commenting on those exceptions for years; for the old timers it is decades. Yes, 6 months and 1 day gets a comment too.

To be honest, I can't imagine who you have been working for if this is new to you. You're a residential guy/gal, right?

They want to know WHY your comparables did not meet the above guidelines. Of course there are times when the data does not allow the appraiser to meet the guidelines - just explain.

I don't mean to be a smart *** or to insult but please understand that your attitude as expressed in "I understand the comments and use them when asked or deemed necessary, what I don't get is the lender/client not wanting me to name them as the source for my comment" makes you look incompetent. Why? Because explaining exceptions to the above is STANDARD residential appraisal practice.

If you ever deal with a real lender, a report with any of the exceptions noted above won't make it past the desk of a competent underwriter without an explanation. A good underwriter will tell you he doesn't give a damn whether you deem an explanation is necessary or not; the report will be returned to you if do not automatically explain exceptions to the basic guidelines. And, if they have to ask you for this routine data more than a few times, you WILL be removed from the approved list.

MP

 

[John Hopkins]

Tired of LO & UW calling for newer comps when best ones sold 6-9 mo ago. I automaticly include a paragraph similar to this when I use older sales.

DATE OF SALE: A thorough search was made for comparables in this market and similar market areas. Two comparables (Sale #3 and Sale #4) sold over six months prior to this report. They are considered better indicators of subject value than other, more recent sales of different styles, location or quality. If, in the appraisers judgement, sufficient closed sales under six months are not available, then Fannie Mae guidelines, section 406.03(dated6/30/90), allows for the use of these sales. Since the market is stable, these are considered good comparables.

Never have a porblem or question if they read the report. (big if somethimes)

 

[Vegan702]

Edited - I am an idiot.

 

[Vegan702]

See above post concerning I am an idiot.

 

[PropertyEconomics]

Vegan,
The difficulty really is that most of us write to FNMA guidelines and not all appraisals are sold to FNMA ... in fact many arent.
I have struggled with this exact thing you are, however, it occurrs to me that other Investors have differing criteria than FNMA may and if I need to comment on something about a 6 month old sale then so be it.
I have posted before, and this is certainly no knock on you, I think we would be better served choosing our fights more prudently. Commenting on the sale date does not have any effect on market value and merely explains why more recent sales werent available.
In declining markets or in stagnment markets older sales may be a sign to someone that you are TRYING TO HIT A VALUE using old sales, which I would not think is the case in your instance.
Id merely comment and assume it was a different investor criteria, much like supplemental standards FNMA has but the investor in your instance cant make it a rule or guideline.
Let us know how you come out and what you decide.