Listing and Pending: "arm length" or "listing"?

[residentialguy]

How UAD wants you to handle pending sales.

 

[J Grant]

Then I don't know what else to say. You are doing it incorrectly and lack deductive reasoning by doing it that way.

• How difficult is it to realize that you describe the comps exactly like you describe the subject when it has a contract?
• How difficult is it to realize that it is a pending SALE and you are to describe what kind of sale it is?
• How difficult is it to state that it is under contract and is no longer active?

All the above is done in the narrative.

Open up you eyes, guys. Read the directions and think.

See above...if I find out different I'll change it, but I am covering sale type, the fact that is pending etc in the narrative comments about the listings. Till a listing is closed, it is not sold, the UAD limited selections are asking us to make misleading choices in that field on listings with contracts.

 

[residentialguy]

It never says "sold". You have a sale in process. You have a contract...what about contract and the option to put contract don't you understand??? Seriously!

Why would you state the subject contract one way and treat the comps (that have a contract) completely different???

It is a pending SALE. It is not a pending listing. A listing is ACTIVE and has no contract - and that is how the UAD treats it. When it has a contract it moves to pending sale.

You are not following the UAD requirements/directions and you have a misleading report. Why would you state one thing on the form and state the other in the narrative? It makes no sense.


It does shed to light our disagreements on REOs and why we can't agree, however. :laugh:

 

[residentialguy]

See Pages 21-24
FANNIE'S
UAD Appendix D: UAD Field-Specific Standardization Requirements Page 21 of 37

Page 23
Date of Sale/Time
For each comparable property, the appraiser must first identify the status type from
the list of options below.
Status Type
Active
Contract
Expired
Withdrawn
Settled sale
�� If the comparable property is an active listing, the appraiser must specify ‘Active’.
�� If the comparable property is under contract, or an expired or withdrawn
listing, the appraiser must first indicate the date status type using the
abbreviations below followed by the corresponding contract, expiration,
or withdrawal date in mm/yy format. Use ‘c’ for contract, ‘w’ for
withdrawn listings, and ‘e’ for expired listings.

Page 24

Status Type – Appraiser must select one value from the specified list
Date – mm/yy
Contract Date Unknown Indicator (for Settled Sales only) – Select ‘Yes’ or ‘No’
The PDF creator will automatically insert the abbreviated Date Status type and a
semicolon to separate the data values (for settled sales only). If the appraiser indicates
the contract date is unknown, the PDF creator will populate ‘Unk’ after the
semicolon.
Examples:
Active listing: Active
Contract: c04/10
Expired listing: e04/10
Withdrawn listing: w04/10
Settled sale (contract date known): s04/10;c02/10
Settled sale (contract date unknown): s04/10;Unk

Mike,
It's clear to you and me, but...it seems we are at the catalyst of the old saying "you can lead a horse to water..."

 

[AnonApprsr]

This horse thinks your water is stagnant and I will keep going to my own water hole!

 

[residentialguy]

Congratulations :icon_mrgreen:

 

[Rich Heyn]

This video may be helpful.

http://www.screencast.com/t/s55NSj4Z

 

[J Grant]

Hi Res Guy, thanks for the UAD format detail. From that link you are correct about putting contract rather than listing for a listing with a contract of sale (See, I can admit when you are right! Yea!). Explaining it in narrative accomplishes same, but I might as well fill it out the way UAD specifies.

UAD though is idiotic on the point.. a listing with a contingent contract or pending contract is not a sale. Many realtors refer to it as a "pending sale". And it is, till the pending sale falls apart. We all should go to our MLS and look up the BOM (back on market) listings. Many of these had pending sale contracts that did not work out. Buyers don't get approved for financing (as many contracts are contingent on financing), other contracts are contingent on buyer selling their home, other contracts are contingent on inspection and the house does not pass inspection, or there is a title problem, etc. At any point before closing, the deal can fall apart and within a day, it changes from pending sale to active listing back on the market.

Once the parties sit down and closing and money and title changes hands, then it is a "Sale". You are correct though about UAD format and how they want us to write things in the fields.

 

[residentialguy]

Hi Res Guy, thanks for the UAD format detail. From that link you are correct

...See, I can admit when you are right! Yea!

Glad I could help clear it up.

I think many appraisers are not following the UAD requirements with this. There are many MANY things I hate and disagree with concerning UAD, but I personally don't have a problem with this particular issue. It makes sense - it is consistent with how you categorize the subject and shows the user very pertinent information about that pending sale contract right up front.

 

[yes4me]

In summary, for normal (armlength) transaction, the correct way is:

PENDING: armlength for "sale or financing",contract date for "Date of Sale"
ACTIVE: Listing for "sale or financing", Active for "Date of Sale"

Is that correct?