Insufficient comps

[David S]

Got an 2055 assignment from AMC. There are only one comp sold in last 90 day. another comp sold in last 90 days will be 3 miles away AND 30%+ larger GLA. How to proceed? Any suggestion? Client / Lender is off hour already. Due tomorrow evening. Thanks!

 

[andrew81]

Why only 3 months? Must be an assignment condition?

Typically, for residential lender appraisals it is acceptable to use sales within 1 year with explanation why you used sales over 3 months, 6 months or whatever, and date of sale market condition adjustment, if necessary.

Also, expand your search area and provide an explanation of why you went outside of the neighborhood.

 

[David S]

Why only 3 months? Must be an assignment condition?

Typically, for residential lender appraisals it is acceptable to use sales within 1 year with explanation why you used sales over 3 months, 6 months or whatever, and date of sale market condition adjustment, iif necessary.

Also, expand your search area and provide an explanation of why you went outside of the neighborhood.

Go outside area better or extend into 6 months better? Seems FNMA like close distant? Anyway, HELOC won't go to FNMA, right?

 

[andrew81]

For lender appraisals staying within 1 year is preferred over going further in distance.

In my opinion, whether distance or date are more important depends on the market area and would be best answered by studying the available sales data.

 

[Surf Cat]

Only 6 months? Lol...In the subject's immediate neighborhood, I'd go back 12, 18, 24, or even 36 months if I had to.

All areas from the GLA in the market grid to financing require components of bracketing and or equality and similarity.

The subject's site and GLA should be bracketed.

Location, zoning, bed and bath count, need a couple of comps with equality.

Subject's location, condition, age, views and or amenities must have similarity. Yes, I said location again. If competitive sales are this sparse, you need to find properties in alternative, competitive neighborhoods with similar median sale price points.

If you expand the parameters of time and distance to meet all of the above.... you should be good to go. You also need to explain in the report what you did and how far back you went in time and distance from the immediate neighborhood.

Remember, no one's going to find anything different than you if you do a thorough search and analysis.

 

[Overimprovement]

Selecting the 3 (or more) best comps does not always mean you have 3 good comps.

 

[David S]

Only 6 months? Lol...In the subject's immediate neighborhood, I'd go back 12, 18, 24, or even 36 months if I had to.

All areas from the GLA in the market grid to financing require components of bracketing and or equality and similarity.

The subject's site and GLA should be bracketed.

Location, zoning, bed and bath count, need a couple of comps with equality.

Subject's location, condition, age, views and or amenities must have similarity. Yes, I said location again. If competitive sales are this sparse, you need to find properties in alternative, competitive neighborhoods with similar median sale price points.

If you expand the parameters of time and distance to meet all of the above.... you should be good to go. You also need to explain in the report what you did and how far back you went in time and distance from the immediate neighborhood.

Remember, no one's going to find anything different than you if you do a thorough search and analysis.

Thanks! From public record, I got another comp sold in last 30 days. The price inline with other comps adjusted value. But it is off market sale, so I don't have any MLS information can reference from. Since it never had historical sale, there is no any picture from MLS or public web site. Also, I have no way to talk anyone about property condition since there is no realtor involved in the sale. Better not use it, right?

 

[Dublin ohio]

Seems FNMA like close distant?

If that was the case. 95% of my rural appraisals wouldn't pass muster

 

[David S]

If that was the case. 95% of my rural appraisals wouldn't pass muster

I am taking about urban or suburban appraisal. For rural appraisal, you can extend to 10 miles?

 

[Dublin ohio]

I am taking about urban or suburban appraisal. For rural appraisal, you can extend to 10 miles?

Where are you getting these requirements from. I do urban and suburban also. I have a PUD in my immediate neighborhood. Where I can have sales over 2 miles away in the same PUD.