FHA Requires 2 Sales That Support Value?

[Elliott]

I've was hit once with the "FHA" standard (hidden as a "lender" requirement). So when I get an FHA request, I charge accordingly and say, "I will only take this assignment with the understanding there probably won't be 3 sales within 6 months within 1 mile of the subject."

 

[The Nightfly]

This may be becoming a new thing...I have two lenders who recently started asking for at least 2 sales at or above OMV (it's not in the engagement letter, but they come back after the fact). One of them said it was their investor's requirement.

 

[Rob Frazier]

Hmmm I haven't seen this either.

 

[Mike Kennedy]

HUD 4000.1 "Required Analysis and Reporting
The Appraiser must include as many comparable properties as are necessary to support the Appraiser’s analysis and conclusion. At a minimum, the Appraiser must include the most recent and relevant sales, preferably within the last six months. The Appraiser must include at least three sales that settled no longer than 12 months prior to the effective date of the appraisal. The Appraiser must provide additional support by including more sales, offerings, offerings now under contract, or relevant sales that settled more than 12 months prior to the effective date of the appraisal.
The Appraiser must analyze the whole market, including when there are a number of sales that may or may not be classified as arm’s length sales or may not be classified as directly similar to the Property."

 

[Tim The Enchanter]

Always ask for a stupid stip in writing, if it isn't already.

 

[Amy Perkins]

Ask them to provide the FHA guideline that says that. In some markets there are not any sales that would support a specific value but more likely a range of value.

Ask them to provide the sales so that you can review them if they are appropriate. If sales are scarce, explain how they are scarce.

 

[Terrel L. Shields]

their investor's requirement.

Can an investor "require" requirements above what FHA dictates? If a post-report request demand added pay and paid in advance before you comply.

 

[residentialguy]

Ask them to provide the sales so that you can review them if they are appropriate. If sales are scarce, explain how they are scarce.

LOL...they'll have to pay for that privilege.

 

[J Grant]

"4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report."

The above from cert page URAR.

 

[Don Clark]

"4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report."

The above from cert page URAR.

Try doing an appraisal in one of the counties I do some, very little, work in, in Camden County, North Carolina. There isn't even a real town in the entire county. There are some new subdivisions but they are so new that there are few sales. So......................a comp may be next door or 12 miles away. I notice what Mike Kennedy refers to the "market". Gee, I though it was all about the "Neighborhood".? In some cases, like the one I just cited, the entire county is the market and the neighborhood.