Paired Sales comments

[Mr Rex]

Paired sales, Bigfoot, and Nessie the Lochness monster. Fact or fiction? I'm thinking of developing a CE class based on this mythology and hope the Bigfoot and Lochness stuff can keep folks awake for 7 hours...:new_smile-l:

 

[Terrel L. Shields]

There is an underlying theme here that the current markets, the condition, the difficulty of financing, and the stress of the seller and / or bank REO means there are a lot fewer sales and among those sales a lot fewer usable sales... in the sense that the "best" comps would be arm's length, uncompelled sales of houses in average condition and marketed for an average amount of time.

This means the precision of the estimate of value is nothing close to what it was. The data are limited. Thus the appraiser has to rely more on judgment at the very time the lender wants certitude. There is no way to reconcile such positions. But I don't even try. I just try to politely explain, this is what I found, it is limited in quantity and quality, it's now up to you.

That's a USPAP biggie. We need to keep in mind that we should discuss and disclose the quantity, quality, and appropriateness of those sales and market data we use (including income and cost data)...