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FHA Multi Family Question

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Metroappr

Junior Member
Joined
Jan 20, 2005
Professional Status
Licensed Appraiser
State
Michigan
Hi, I am currently doing a FHA multi family report. The city in which the subject is located does not have any multi family sales that have closed within the past 12 months. Is it ok to include a sale with a closed date of over 1 year within the first 3 comparables? Thanks for any input.
 

Metroappr

Junior Member
Joined
Jan 20, 2005
Professional Status
Licensed Appraiser
State
Michigan
FHA requires 3 sales within 1 year. Expand your search area or notify lender.
Hi-that is what I thought. I can go outside of the city to the next one but they are different marketplaces. This sucks!!!!
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Hi-that is what I thought. I can go outside of the city to the next one but they are different marketplaces. This sucks!!!!
How to handle this then is to include 3 comparable sales within the past 12 months from the neighboring city with an appropriate (and very well explained) location adjustment, along with additional comps that are older than 12 months located within the subject's city (including any required market condition [time] adjustment). A pain to be sure, but certainly not impossible.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
A pain to be sure, but certainly not impossible.

You may have misquoted your fee for this assignment, given this complexity. If so, I'd say a fee adjustment (upward) is warranted and reasonable (unless you researched the subject and market prior to accepting the assignment).
 

Walter Kirk

Senior Member
Joined
Jun 24, 2003
Professional Status
Licensed Appraiser
State
New Jersey
Give the FHA the 3 comps that it wants then add the real comps as 4,5&6 give the comps that you don't like little or no weight.
 
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