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Comp Didn't Have Time to Record: EA?

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ZZGAMAZZ

Thread Starter
Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
SCA reads "Comparable #X sold per MLS on xx/xx/zzz for $zzz,zzz. Although it did not record, the sale price was confirmed with the listing agent who also described sales concessions of $x,zzz."

I do this when necessary either because it's a very recent sale that hasn't had time to record, or because the market is flooded with bank foreclosures to the extent that the number of open market transactions is virtually non-existent, especially when the adjusted price is compatible with the remaining comparables that have recorded.

Question: Should I state an assumption or an extraordinary assumption that MLS and the L/A are accurate? Or,does the scenario itself imply an assumption that doesn't need to be stated/invoked?
 

Jerry Bone Jr

Senior Member
Joined
Feb 23, 2004
Professional Status
Licensed Appraiser
State
Oregon
In my mind, it's a sale after it's recorded.

The Listing Agent is the person that inputs the info in to the MLS. Therefore, a second verification source is needed. (selling agent, buyer, seller, etc.)

Assuming that your data source (both of them) is correct is an ordinary assumption.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Use it as a 4th (etc.) "sold" comparison and report that the sale has not been verified via a public record source.

Include it as additional support to the other sold comparisons that you have verified via a public record source.

Do not make an "extraordinary assumption" regarding the veracity of the information provided to you by the MLS and the agent. Just explain, explain, explain...
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
I would not use it until there is a deed.
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
I've had an agent tell me that a property "sold", although there was nothing recorded, only to find out it was actually a lease/purchase and no title had yet changed hands. Be careful. Ask the agent for a HUD-1...not that you will get it.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
SCA reads "Comparable #X sold per MLS on xx/xx/zzz for $zzz,zzz. Although it did not record, the sale price was confirmed with the listing agent who also described sales concessions of $x,zzz."

I do this when necessary either because it's a very recent sale that hasn't had time to record, or because the market is flooded with bank foreclosures to the extent that the number of open market transactions is virtually non-existent, especially when the adjusted price is compatible with the remaining comparables that have recorded.

Question: Should I state an assumption or an extraordinary assumption that MLS and the L/A are accurate? Or,does the scenario itself imply an assumption that doesn't need to be stated/invoked?
You need to talk to the escrow person and verify, with escrow number, that escrow closing took place and the transaction was recorded (they should have the document number also). That's as good as it gets.
 
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