FHA requirements for comps

[Paul Cunningham]

I have an AMC that says it is now an FHA requirement to provide distance AND DIRECTION of each comparable in the comp grid. I know some appraisers do this, but I don't find it necessary. Is this just another example of an AMC trying to make all our reports look the same, or is it an actual FHA requirement to put the direction of the comparable in the grid? If so, where can I find that in the FHA handbook?

 

[CANative]

See Page D-28 in Appendix D...

Proximity to Subject
• Enter proximity in straight-line distance and direction. For example, "1.5 miles NE" or “3 blocks south”. If comparable distance from the subject is more than a generally accepted distance, or located outside the defined neighborhood boundaries, be sure to explain why the sale is applicable in the "Summary of Sales Comparison Approach" section.

 

[Paul Cunningham]

thanks for the help. I still think it's dumb. who cares which direction it is, look at the map

 

[Bama Bayou]

thanks for the help. I still think it's dumb. who cares which direction it is, look at the map

It may be dumb, but I've been doing it on every appraisal for over twenty years. I can also look at a map. This requirement adds about five seconds to my report writing time. Actually, it takes me no more time because my mapping software does it for me.

 

[Paul Cunningham]

Just one more thing that I have to remember to do before I "upload" the report. When you have been doing things the same way for over 10 years and then all of a sudden you are asked to do this and that, and this and that. Change public records to tax records in 15 different places. Add the words "head and shoulders" like if it is some kind of dandruff shampoo. Forget to do it once and then your 5 seconds ends up being 10 minutes when you have to go through some of these lengthy uploading processes when they ask you to correct it.

 

[Paul Cunningham]

What mapping software do you use? Maybe mine does it too, just a setting or something.

 

[CANative]

Just one more thing that I have to remember to do before I "upload" the report. When you have been doing things the same way for over 10 years and then all of a sudden you are asked to do this and that, and this and that. Change public records to tax records in 15 different places. Add the words "head and shoulders" like if it is some kind of dandruff shampoo. Forget to do it once and then your 5 seconds ends up being 10 minutes when you have to go through some of these lengthy uploading processes when they ask you to correct it.

All of a sudden? lol... The Appendix D has been the same for 5 years.

 

[Paul Cunningham]

My point exactly. I have submitted thousands of FHA reports over the years, and today they want the direction next to the distance or they won't accept it. If I have been doing it wrong all these years then fine, I'll change it. My bad.

 

[CANative]

I used to put in the direction religiously but then I forgot about it for a few years and no one complained.

Thanks for posting and reminding me (making me look it up). I'll make sure I do it right from now on.

Cheers.

 

[Paul Cunningham]

An FHA guideline is what it is. I'll make sure to do the same.