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FNMA, Comps

adventure0us1

Sophomore Member
Joined
Mar 28, 2008
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Underwriter condition

1. Hello appraiser, We still need 1 more comp even though comp 1 and 2 are different sales on the same property. This is not allowed and we need 3 separate properties. Please add a new comp to replace comp 2. Thank you!

I can't seem to locate anything backing up this claim. I've used the same property as Comps 1 & 2. The subject is in disrepair and Comp 1 sale was inferior in condition, purchased, and resold. Comp 2 is a separate transaction (fix and flip) with a different MLS number and is in superior condition to the subject. Is this permissible? Should I ask them to show me the regulation stating this isn't allowed or try to locate an additional comp that doesn't exist?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I've used the same property as Comps 1 & 2
No can do. Get another, use the last sale in 1-3 and previous as 4th or higher, explain the difference in price, especially if the market conditions don't justify the difference
 

adventure0us1

Sophomore Member
Joined
Mar 28, 2008
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Come up with another comp. Don't make it more difficult than it is.
I wish it were that easy. Island property, 500 sf 1 bedroom, with very limited sales. The new comp will not be comparable to the subject to the tune of 150-200% larger in GLA, far superior in condition, and three bedrooms.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
new comp will not be comparable
Use it anyway, dismiss its value in the reconciliation and key on your best comp...I find sometimes a ranch property is so out of the loop, I simply have it as a place holder. Same applies there it seems.
 

adventure0us1

Sophomore Member
Joined
Mar 28, 2008
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Use it anyway, dismiss its value in the reconciliation and key on your best comp...I find sometimes a ranch property is so out of the loop, I simply have it as a place holder. Same applies there it seems.
Thank you.
 

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
lender can always ask for more than FNMA requirements. normally comps 1-3 are similar comps. comps after #3 are called secondary comps. you can put more comps that you need there to support your value. older, more distance, larger, smaller, whatever. you have a difficult appraisal, but one of the first 3 comps can be whacky off. and if you can adjust to range of the others, all the more better. i do easy big city row homes. i always use 4 comps, maybe 5, and a listing. this is why you should be getting paid more for this complicated appraisal. remember this request, and do it for every appraisal.
if you billed right, then you are getting paid properly to do the work needed to convince any reader of the report that you value is reasonable. and advice given before me is well said.
 

sputnam

Senior Member
Joined
Apr 24, 2012
Professional Status
Certified General Appraiser
State
North Carolina
Find them another comparable. Add it to the appraisal. Do not remove comps you've included. Tell them there will be an additional fee since in your professional opinion the sales you used in the appraisal report are the best available. If they insist you do it for free... find a new client.
 
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