• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Inside Vs. Outside Comps (new Subdivision)

Status
Not open for further replies.

Digger88

Elite Member
Joined
May 11, 2010
Professional Status
Certified Residential Appraiser
State
Virginia
i know this isnt what some would consider optimum but what i like to do is choose a new comp from the same subdivision form a competing builder if i can. no one has ever stipped me on this but just wondering if anyone else does this? if i cant do this its like pulling an entire mouth of teeth to get an outside sale agent from another sub give me a new construction comp. usually im met with come back next week and i should be able to help you...
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Why not just go to there "Open House", here they are on a Sunday / Thurs. OR see if you can get the "Brokers Open" and go to that.
 

Digger88

Elite Member
Joined
May 11, 2010
Professional Status
Certified Residential Appraiser
State
Virginia
Why not just go to there "Open House", here they are on a Sunday / Thurs. OR see if you can get the "Brokers Open" and go to that.

do you "pop in" on an open house and get help or do you schedule? these agents have ZERO interest in my hood of helping an appraiser they have no vested interested in helping.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
i know this isnt what some would consider optimum but what i like to do is choose a new comp from the same subdivision form a competing builder if i can. no one has ever stipped me on this but just wondering if anyone else does this? if i cant do this its like pulling an entire mouth of teeth to get an outside sale agent from another sub give me a new construction comp. usually im met with come back next week and i should be able to help you...
That would not meet the requirement for a comp outside the project....the requirement for new construction is for at least one comparable sale to be located outside of the subdivision


Here is the exact language from Fannie's Selling Guide:

Additional Requirements for New (or Recently Converted) Condos, Subdivisions, or PUDS

If the subject property is located in a new (or recently converted) condo, subdivision, or PUD, then it must be compared to other properties in the neighborhood as well as to properties within the subject subdivision or project. This comparison should help demonstrate market acceptance of new developments and the properties within them. The appraiser must select one comparable sale from the subject subdivision or project and one comparable sale from outside the subject subdivision or project. The third comparable sale can be from inside or outside of the subject subdivision or project, provided it is a good indicator of value for the subject property. Two of the sales must be verifiable from reliable data sources, other than the builder. Sales or resales from within the subject subdivision or project are preferable to sales from outside the subdivision or project provided the developer or builder of the subject property is not involved in the transactions.
 

Digger88

Elite Member
Joined
May 11, 2010
Professional Status
Certified Residential Appraiser
State
Virginia
That would not meet the requirement for a comp outside the project....the requirement for new construction is for at least one comparable sale to be located outside of the subdivision


Here is the exact language from Fannie's Selling Guide:

Additional Requirements for New (or Recently Converted) Condos, Subdivisions, or PUDS

If the subject property is located in a new (or recently converted) condo, subdivision, or PUD, then it must be compared to other properties in the neighborhood as well as to properties within the subject subdivision or project. This comparison should help demonstrate market acceptance of new developments and the properties within them. The appraiser must select one comparable sale from the subject subdivision or project and one comparable sale from outside the subject subdivision or project. The third comparable sale can be from inside or outside of the subject subdivision or project, provided it is a good indicator of value for the subject property. Two of the sales must be verifiable from reliable data sources, other than the builder. Sales or resales from within the subject subdivision or project are preferable to sales from outside the subdivision or project provided the developer or builder of the subject property is not involved in the transactions.

but this says what i do which is 2 in and 1 out (when i dont have a competing inside builder) but i usually use a resale comp 3 or inside competing builder comp 3 when available (though i dont get stipped on it, whoops)

edit: for instance i just did a freakin 3100sf rambler on a half acre in a non gated sub 25 miles outside dc for 967k. which is insane! if they want a 3rd outside comp with a 150k subdivision adj that would just look silly.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Does anyone else see the problem with using sales from an outside condo project when there are plenty of sales in the same complex? For years when I was teaching appraisal I would say...."the very best comparable sales is the exact same model, next door, that sold yesterday. From there it's all down hill!".

I would suggest using sales from competing complexes can create un-needed adjustments and also requires the appraiser to look at the declarations, budget, dues structure, and amenities and then try to compare them to the subject's complex. Doesn't make much sense to me.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Does anyone else see the problem with using sales from an outside condo project when there are plenty of sales in the same complex? For years when I was teaching appraisal I would say...."the very best comparable sales is the exact same model, next door, that sold yesterday. From there it's all down hill!".

I would suggest using sales from competing complexes can create un-needed adjustments and also requires the appraiser to look at the declarations, budget, dues structure, and amenities and then try to compare them to the subject's complex. Doesn't make much sense to me.
I agree with you that for an established condo projects with resales that the best comps are generally those that are from within the same project. However, for a new project (whether it is a condo, PUD, or newly built subdivision) I get the requirement for an outside comparable sale...the secondary market is leery of builders/developers creating their own market.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
I always try to get an outside comparable especially on new construction or condominiums BUT I use it as my comparable 4 or 5 but often requires large adjustments so typically I place very little weight on it.
 
D

Deleted member 134708

Guest
Non-GSE work i use 6 closed sales (so abundent) from the builder of my subject.

GSE work I use 3 closed 1 pending from my builder, 1 closed and 1 pending from a competing new builder.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks