How long the comps we can go back?

[J Grant]

Are there sales in adjoining counties similar to the subject that are more recent?

Their search issue was not about the sale of properties similar to the subject ( it seems like they found ample similar sales ). It was about finding another sale with that high price.

i will sometimes search by sale price but not to "hit"a value, it is to see what shows up . Sometimes a viable comp is missed in other searches, and that is a reason to include it. The reason to exclude higher price sales was that they were significantly larger, more upgraded, and in a better location, any of which, if an appropriate adjustment were applied, would make its adjusted value lower anyway. Sometimes, it is a good proactive strategy to mention those sales and why they were not used.

 

[David S]

Thanks all inputs.

I had two times have to use 2 years old comp. One is a multiplex family assignment since whole city only have two comps (very similar to the subject, nearby) which were sold 22 and 26 months ago. The lender told me use 22 months' comp and drop off 26 months' comp to say can't use more than 2 years ago. Then use nearby city's comps since multiplex family are similar market. Another one is condo assignment. There was not recent sale within the HOA. All comps were outside complex. Lender that must include one within complex up to 2 years sale history with time adjustment.

For this one, all recent comps are dissimilar. One most similar comp (same floor plan, same street) were sold about 25 months ago. Also, the local market shows the current market IS at about 2022 spring high now. There is also a similar newer community nearby, but the market is very different, different city, different school district. I will say different buyer. Can I use the comps from there and do the adjustment? I will say it is very weak. Please comment again.


Thanks!

 

[George Hatch]

Just get an purcahse loan assignment in. The contract price is high. I only find one comp sold in Jun, 2022 with such high price. I was heard we can't use the comp more than 2 years ago, even with time adjustment? Can someone confirm that?

Also, per ACI system, the final appraisal value must be bracketed within comps' price range. Is it true? Thanks!

Why the heck are you using price as a search parameter at all? And why are you approaching the question of comp selection based on what's the most you can get away with as opposed to simply searching for the most similar properties regardless of price.

The idea of bracketing is about bracketing property attributes. Not price.

Lack of reasonably comparable properties is a reason to expand the search criteria. That where you have to do what you have to do. If the most recent sale in a condo project was 2 or 3 years old they might not make a great indicator of the current value but they can be cited as additional info and compared to the dated sales of in the same projects as the current comparables you're using - to see what that time adjustment should look like.

(2 years ago a model match to the subject sold in this project for $300k. During that same time frame sales from the same project as S#1 sold for $290k; slightly lower. That differential from those dated sales support a 3% project adjustment for S#1). ​

 

[Terrel L. Shields]

First, very carefully plot out the changes in value over the period you want to use the comps. Stop looking for comps that support the subject contract. Hunt comps that are similar age and size with similar valued lots. I know with the reduced number of sales in a given area, we have less to work with in the past year, but I'd be darn careful using really old sales...something you might do with a commercial property or farm property.

Even if dissimilar design ( 1 story vs 2, log vs A frame, etc.) comment on those but use them rather than dismiss them. In appraising the hard ones, Frank Harrison's excellent book, the key is go back in time and go further afield. And with FNMA and FHA reluctant to use older sales, I'd just expand the search into similar market areas (as opposed to the immediate neighborhood). BTW, buy the book. And check the used prices as low as $2.07. Two bucks is a bargain.

 

[Zoe]

I think we pegged you. Don't ever focus on price. Always focus on subject real property and competing properties. Don't narrow your search based on any kind of price. It is fine to use price as a search criteria. But your research will quickly determine if that property is most competitive with the subject real property.

Then you can start narrowing the price criteria.

The County I work is very diverse in market areas, but you can often find properties further from the subject's immediate area that have similar historical property values. Does that make sense? I know you are trying to meet the old GSE guidelines. I know where you are coming from.

People have even suggested adjoining jurisdictions? Catch my drift?

Don't worry about 1 mile, 5 mile, 10 mile. etc.

I work market areas where 1 street makes a difference to tell you how diverse the market I work is.

 

[Zoe]

We have 8 different jurisdictions in the County I work. Memphis is the worst on being very diverse in real property values.

Memphis was also like mortgage capitol of the world where lenders were scamming borrowers.

FBI and everybody else was here on mortgage scams.

 

[Zoe]

Did any banker go to jail on mortgage fraud?

I can tell you the answer but only if you say please.

 

[Zoe]

Just get an purcahse loan assignment in. The contract price is high. I only find one comp sold in Jun, 2022 with such high price. I was heard we can't use the comp more than 2 years ago, even with time adjustment? Can someone confirm that?

Also, per ACI system, the final appraisal value must be bracketed within comps' price range. Is it true? Thanks!

Do we have an understanding Sir or Ms.?

 

[Zoe]

at the risk of being obtuse, what is in your client's best interest?

Is ACI your client?

 

[Zoe]

On MV appraisal it really should not matter who your client is. It don't with me. I know I make some people unhappy frequently. I always focus on subject real property rights in relationship to market value definition. It takes me a long time to get there many times.