I Should Know This, but.....

[Nancy in Friday Harbor]

Got a call from a client this morning.....

"If a property was listed within the last year, but is not currently listed, do you need to mention this in the appraisal?"

She went on to say that Fannie & Freddie no longer care if a property was listed within the last year.

I've looked at USPAP and can find only a reference to "current" listing. Uh, so define "current". I feel like I should know this, but it's Friday & my mind is mush from too many 14+ hour days in a row including all of the last two weekends.

I agree, omission of pertinent data is misleading and not what I'm trying to achieve. But I want to make an informed response and cite chapter and verse for either must include or don't have to include.

HELP!!!

Thanks,

Nancy

 

[Dee Dee]

Hi Nancy,
I've gotten in the habit of always disclosing if a property was listed within the past year, even if it may not be required.
I got tired of the review appraisers always wanting an addendum stating that it had not been listed, after I'd handed in the appraisal. Seems like they're asking for that information pretty consistantly these days, at least in my neck of the woods.
No reason that the lender would have a problem with this unless the homeowner is looking to refi at a value that is higher than the listing price that they were unable to sell it for. Big red flag.

Dee Dee

 

[Wally Jones]

Nancy,

See my reply to Tim from Texas in this section ("New Contract and USPAP?").

Seems like the third paragraph might apply to your situation. (I like it when ya don't have to wade through USPAP and can use the lender's own rules to answer their questions!)

Dee Dee is right. Look around for other red flags.

Wally

 

[Nancy in Friday Harbor]

Dee Dee,

I absolutely agree with you......if Fannie & Freddie don't have a problem with a listing, why should the LO have a problem if I mention it. Unless, they're gonna ... ah, no way... a LO trying to pull a fast one? ... never happen. Ya, right!

What I was looking for, in the collective wisdom of the forum, was chapter and verse that said I MUST include listing history or information to the contrary. That way, I can just simply say "Chapter Yadda, Verse Yadda-Yadda" -- end of discussion.

If you have a sudden brain storm, let me know.

Have a great weekend. Is is springtime in those Rockies yet?

Nancy

 

[Restrain]

The data should be reported. If anything it should show the upper limit at the time of the listing. My thought is that if there is any data in the last few years that impacts the subject, it should be reported. Not just the last year. After all, if the subject is built on a landfill that was closed 10 years ago, you would note it.

 

[Chris Harrison]

Nancy
On the 1004 form, you might want to quote the last comment section of the Sales Comparison Analysis: “Analysis of any current agreement of sale, option, or listing of the subject property
That is pretty clear to me! You are required to analyze any listing for the subject or comparables within the last year and comment on there effect on the appraisal.
Chris

 

[Mountain Man]

Good point Chris. If the lender requested a URAR, that is what the form says to consider.

 

[Dee Dee]

Nancy,
Although I've only run into a situation similar to yours a few times within the past 6 months or so, the last couple of times I've also included the previous listing agent's name and phone number in my report. That way I get out of having to explain the 'why did they withdraw the listing' and 'how many days was it on the market' questions that sometimes follow. Anything that I could possibly disclose would be hearsay from the listing realtor or homeowner anyway (possibly bent to suit their needs), so I figure it's better that they get any misinformation directly from the ones who are trying to pull a fast one (assuming, of course, that this is the case :wink: ). CYA, Nancy.

Spring is struggling to get to my elevation. The last couple of days have been in the 50-60 degree range but it's still freezing at night and there's supposed to be another front coming through this weekend. Not unusual to have snow on the ground here right up until May.

Dee Dee

 

[Larry Lyke]

Nancy --

Even though Fannie's dropped the requirement for this information, the sponsor may want that information in order make a loan decision. The sponsor does not want to put their money into a mortgage that has the potential to be paid off in a very, very short time. It's expensive to be churning their investment money all the time. IN FACT, it's not investing your money when it comes back to you in a couple of months just after you've paid all those expenses to create an "investment."

If the property has been listed within the last year and didn't sell, they are going to ask the borrower WHY.

 

[Austin]

If you check the achieves this subject was debated thoroughly about six weeks ago. My thinking is that you should report any information that may relate to anything to do with marketability or price. If the property was listed for sale and withdrawn, then that raises a question of marketability. There may be a simple answer, but if I were the lender and my money was secured by this property, I want to know what is going on regardless of what the fine print or the letter of the law says. I think what the appraiser reports in this regard is none of the lender or any agency’s concern, and that they are out of order by bring the subject up. I tell my banking buddies all the time: “I don’t tell you how to run the bank, so don’t you tell me how to appraise.”