How many comps do you use?

[DWiley]

When I joined my current firm they encouraged me to cut back on using unnecessary comps when they don’t strengthen the credibility and aren’t an assignment condition (e.g 2 actives).

I agree with this approach. Over the years I have seen a lot of reports where adding more comps made the report worse, not better.

Think about it this scenario - you have 3 or 4 comps that support a value between $450,000 and $500,000, but then you add 2 or 3 other sales and the adjusted range widens to $400,000 to $600,000. Is that a "better" report? With that scenario the reviewer will often start to wonder adjustment(s) (or adjustment rate) you missed that resulted in such a wide range.

 

[Tom4value]

I use what I need to have a credible appraisal. I include what I need to have a credible report, that’s it. Let me explain.

I look at all relevant sales and pendings. This gives me a high and low value. I then chose the best three, the minimum. In most reports, that suffices. In many, I will add a fourth or even a fifth if they are really similar or help support a big adjustment (location, condition, quality, etc.).

Other times I have a comp that supports an adjustment bit is not a really good comp overall. I DON’T put that on the grid. I just mention it as being useful to support the adjustment.

Bottom line, I don’t think about the number of comps beyond the required three. I just care about, “did I support my value to the satisfaction of my client?”

 

[Airstream]

Only what is necessary.

 

[Non Sequitur]

Yep I work 7 days a week 8+ hours everyday often up to 12 hours. I am probably the youngest appraiser you'll ever meet so I can handle it for now...

Thanks for being honest. Too many snake oil salesman like the guy from RSDS claiming 60+ a month working M-F between 9-5, with no help.

 

[chad hampton]

3-4 sales 1 listing. 3 sales 2 listings for FHA. Very few exceptions.

 

[Vermonter]

I typically grid 3-4 closed, 1-2 under contract or active. I "use" quite a bit more in my analysis.

 

[Zoe]

Bracketing comes into play sometimes. Sometimes you can't bracket something without using something that don't even compete with the subject. Usually an underwriter or reviewer will realize that. But some don't really understand appraisal.

 

[sputnam]

Use as many as you need to produce credible assignment results. Report as many as you need to show the Client and Intended Users that your results are credible. Got great comps this time? Three is enough. Got terrible comps? you might need to report 12.

 

[djd09]

how many 'comps' does USPAP require...

 

[DWiley]

The concept of bracketing has been bastardized and used by too many (appraisers and underwriters) as an "easy" button to (allegedly) demonstrate support for an adjustment. I have seen plenty of "comps" thrown in just for bracketing that do not add anything to a report, and sometimes they make the report worse. In many cases, using grouped data or some other type of analysis is far better than just using one sale that happens to "bracket" a feature.