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Comparable sale Age

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jcoffey

Freshman Member
Joined
May 8, 2008
Professional Status
Certified Residential Appraiser
State
Missouri
Are there any FHA guidelines as to how old a sale may be used? I looked in FHA handbook 4150.2 but either overlooked it or it is not there. If there is a guideline as to the age of a comparable sale what manual is it in?
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Do you mean the prior date of sale or actual age?
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
No sale over one year old in reference to sale date.
 

jcoffey

Freshman Member
Joined
May 8, 2008
Professional Status
Certified Residential Appraiser
State
Missouri
I'm sorry, I mean the sale date. Is there a published guideline by HUD that defines that parameter? Is it no more than 6 mos, 12 mos, etc. ?
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I'm sorry, I mean the sale date. Is there a published guideline by HUD that defines that parameter? Is it no more than 6 mos, 12 mos, etc. ?

No sale more than 12 months old.
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
Never a sale over 12 months ,NEVER.Go to the moon if you must..
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
4150.2, Chapter 4, page 8 & 9......"Sales data should not exceed six months between the date of the appraisal and the sale date of the comparable, and must not exceed twelve months. An explaination is required for sales dates in excess on six months".

Is this what you could not find? Pays to have a copy of the handbook. They are free to download or you can get one free from the government printing office.

Here is a direct link to the handbook:

http://www.HUD.gov/offices/adm/hudclips/handbooks/hsgh/4150.2/index.cfm
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
4150.2, Chapter 4, page 8 & 9......"Sales data should not exceed six months between the date of the appraisal and the sale date of the comparable, and must not exceed twelve months. An explaination is required for sales dates in excess on six months".

Is this what you could not find? Pays to have a copy of the handbook. They are free to download or you can get one free from the government printing office.

Here is a direct link to the handbook:

http://www.HUD.gov/offices/adm/hudclips/handbooks/hsgh/4150.2/index.cfm

Show Off! :rof::rof::rof:
 

incognito

Senior Member
Joined
Jul 14, 2005
Professional Status
Certified General Appraiser
State
Florida
Just because FHA states that comparables can not exceed 12 months, DOES NOT suggest that you MAY NOT include any sales over 12 months in age. Certainly it is inferred that there will be 3 sales in the report that are more recent than 12 months, but I can think of several situations where using a sale over 12 months can be very prudent. In fact, I submit that there could be cases where neglecting analysis of a comparable sale over 12 months old could result in a misleading appraisal.

An example could be if your subject were in a small condominium project, which, for whatever reason, historically markets less successfully, and at lower prices than all other comparable projects in the area. Exclusion of at least analysis of the most recent sale in the project, which happened to be 14 months old, could lead to an inflated appraisal.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Just because FHA states that comparables can not exceed 12 months, DOES NOT suggest that you MAY NOT include any sales over 12 months in age. Certainly it is inferred that there will be 3 sales in the report that are more recent than 12 months, but I can think of several situations where using a sale over 12 months can be very prudent. In fact, I submit that there could be cases where neglecting analysis of a comparable sale over 12 months old could result in a misleading appraisal.

An example could be if your subject were in a small condominium project, which, for whatever reason, historically markets less successfully, and at lower prices than all other comparable projects in the area. Exclusion of at least analysis of the most recent sale in the project, which happened to be 14 months old, could lead to an inflated appraisal.


4150.2, Chapter 4, page 8 & 9......"Sales data should not exceed six months between the date of the appraisal and the sale date of the comparable, and must not exceed twelve months. An explaination is required for sales dates in excess on six months".


I guess the word "Must" is sort of like trying to define the word "It" as Bill Clinton did:rof:

Seriously tho, I agree that under some circumstances it would be appropriate to provide additional sales and data that may be over 12 months old.:peace:
 
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