Insufficient comps

[Surf Cat]

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?

I wouldn't....you can make mention of it in the sales comparison comments. Especially if it supports your opinion of value, but don't grid it.

The purpose for indicating data and verification sources is to provide the client with support. Researched proof that the comparable's characteristics and transaction details in the report are valid, that the comparable actually did sell. In other words, citing "just" public records is not enough.

 

[Raven59]

Guidelines are not rules. If the market produces limited sales due to low inventory, follow the market participants. Where would a potential buyer have to travel to find a suitable replacement? The market will tell you what is potentially comparable. If the lack of sales is because of low demand, then the available listings become critical in your analysis. It sounds like you are finding sales to fit a guideline rather than finding market data to support the subject's market value. Mirror the market, not a guideline.

 

[sputnam]

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!

You use the data that exists. Sometimes, it's not pretty. That's not a failing of the appraiser, it's a feature of the market at any particular time. As always, you utilize the most recent, most proximate, and most similar comparable sales that you can find. There is no rule that comparable sales be no more than 3 months old. There is, depending on the Client, a guideline that IF comparables are more than 90 days, the appraiser should provide explanatory comments.

 

[Tom D]

you can only do what is available. this is still better than the lender just making a guess. if you find a better comp more than 12 months old you can make it a secondary comp on #4,5,6. long ago, long ago, the typical sale would be 6 months. that was when there was no inflation. you would have comps older than that as being normal. i always add more comps just to prove my brilliance.
sometimes you might only have 1 good comp to hang your hat on, then you go from there. they won't find any better, since there are none.

 

[Flakey]

AMC "guidelines" should be at the bottom of the list after the requirements of producing a credible, supported report.

 

[J Grant]

go back 6 months to a year, and make a market condition advertisement if needed. What is the obsession about 90 days - explain that you looked for sales in 90 days but only found one.

Sometimes I add a listing or pending if applicable to show a current market trend

 

[Tawfik Ahdab]

Let’s not forget the basics. If assignment conditions are such that you cannot produce a credible report, you must decline the assignment.

You need to investigate whether the 90 day restriction is a requirement or merely a guideline. if the latter, then you can proceed without worry because exceeding the limits imposed by the guideline is not fatal to the credibility of your report, whereas if the 90 day restriction would lead to the issuance of a non-credible report, you MUST part ways with the client on the assignment

 

[Terrel L. Shields]

Better not use it, right?

google the address and see if it was listed by an out of area MLS...or previously was a sale. Then all you need is to determine how financed. The mortgage documents will tell you. Or go by and ask the owners. Yes, perhaps less reliable but if you don't and the reviewer does find it? Don't you think they will ask?

 

[Dublin ohio]

AMC "guidelines" should be at the bottom of the list after the requirements of producing a credible, supported report.

But the OP did not say whose guidelines these are.

 

[Flakey]

But the OP did not say whose guidelines these are.

"Got an 2055 assignment from AMC." I just assumed but it is irrelevant to my point.