Putting all reconciliation weight on a 12+ month old comp.

[Trihard]

I have a refi appraisal that I am doing with a large 2-bedroom ADU in the basement, in C3 condition. No 12-month comparable sales are available with a similar ADU. There is one particularly well-matched comparable that contracted 18 months ago and is by far the most similar sale in terms of location, condition, quality, design, GLA and presence of a basement ADU, its pretty much a perfect comp just 18 months old.

Can this sale be given 100% weight in the final reconciliation under FNMA guidelines after I give it time adjustments? There are 12 month sales that are available but they do not have an ADU. The ADU would be a significant selling point in this market.

 

[glenn walker]

No place the most weight on your best two comps. If you say on 1 your just leading yourself down a review rabbit hole. You can accomplish your goal just don't corner yourself with a 1 comp 12 month old sale. Just saying..lol

 

[soucat]

I have a refi appraisal that I am doing with a large 2-bedroom ADU in the basement, in C3 condition. No 12-month comparable sales are available with a similar ADU. There is one particularly well-matched comparable that contracted 18 months ago and is by far the most similar sale in terms of location, condition, quality, design, GLA and presence of a basement ADU, its pretty much a perfect comp just 18 months old.

Can this sale be given 100% weight in the final reconciliation under FNMA guidelines after I give it time adjustments? There are 12 month sales that are available but they do not have an ADU. The ADU would be a significant selling point in this market.

I would make sure you have a well-supported time adjustment that is applicable to comparable properties.

 

[Mike Ault]

I have a refi appraisal that I am doing with a large 2-bedroom ADU in the basement, in C3 condition. No 12-month comparable sales are available with a similar ADU. There is one particularly well-matched comparable that contracted 18 months ago and is by far the most similar sale in terms of location, condition, quality, design, GLA and presence of a basement ADU, its pretty much a perfect comp just 18 months old.

Can this sale be given 100% weight in the final reconciliation under FNMA guidelines after I give it time adjustments? There are 12 month sales that are available but they do not have an ADU. The ADU would be a significant selling point in this market.

Yes it can. Just make sure the support for your time adjustment is beyond reproach. Actually, it seems as though you only have one comparable, the rest sound like "additional sales data" to me.

 

[Surf Cat]

+1 for what Glenn suggests.

"Most weight placed on comparables #1 and #4.

Even though it lacks an adu, comparable #1 was considered due to being the most recent sale, location, equal bedroom and bath count and due to the lack of more recent and similar sales available in the subject's immediate neighborhood.

Comparable #4 even though dated 18 months, was considered due to its location in the immediate neighborhood, condition, Construction, similar GLA, and has an ADU like that of the subject".

Giving weight to two comps allows you to be within the range of the two most weighted comps.... it gives you a little wiggle room.

 

[Mike Ault]

+1 for what Glenn suggests.

"Most weight placed on comparables #1 and #4.

Even though it lacks an adu, comparable #1 was considered due to being the most recent sale, location, equal bedroom and bath count and due to the lack of more recent and similar sales available in the subject's immediate neighborhood.

Comparable #4 even though dated 18 months, was considered due to its location in the immediate neighborhood, condition, Construction, similar GLA, and has an ADU like that of the subject".

Giving weight to two comps allows you to be within the range of the two most weighted comps.... it gives you a little wiggle room.

It doesn't sound as if there is sufficient sales data to apply credible adjustments to the substantially dissimilar comparable #1. Time adjustments are far more supportable than divining market reaction to unusual features.

 

[Fernando]

Recently I used a 24+ month comp as my Comp 5 or was it 6.
I didn't even give it significant weight but as a support.
Subject was unique and so I had to use what comps I could get.
Reviewers asked for clarifications of my comps three times. Even asked me to look at sales in adjacent towns.
I think the reviewers doing their due diligence and need detail justification for using these 'atypical" comps.

 

[Surf Cat]

It doesn't sound as if there is sufficient sales data to apply credible adjustments to the substantially dissimilar comparable #1. Time adjustments are far more supportable than divining market reaction to unusual features.

I don't think there's been sufficient sales data in the last 2 years Lol.

Based on the OP, it sounds as if the Adu is the primary missing piece of the puzzle. I do like the divining market reaction as you call it. I believe with an Adu, it should be simple enough to find a market reaction by comparing non-Adu sales to the Adu sales that did occur within similar time frames to ascertain a pepercentage The OP can do this with their 18 month old sale.

If the op has a recent sale or two similar in construction, and in GLA to "the main dwelling" ( without an Adu) I'd put secondary weight on that....I'd rather do time adjustments in the immediate area than go to different markets though.

The problem I'm having in my area with Adu's is that quite a few are not permitted. It starts to get messy comparing permitted Adu's with non-premitted ones.

 

[Tom D]

Around here it's called a finished basement, makes life easier. But then again i mostly do big urban row homes. The old italians used to put a kitchen in the row basement where it was cooler to be, in our summer heat and humidity. That was before central air. I always have a tight range, never give any comp more value. If they can't see the obvious, well, i never get stips. It may be the best comp, but how many comps did you use for support. I always ask myself, does my value look reasonable looking at grid. Do i need anymore support for the stupid.

 

[ucbruin]

I never believe anyone who says "never"....