Question on a UW request for 2 comparables out of the neighborhood for new construction.

[shrubberyvaluation]

I think this is where lenders get it from:

Freddie

At a minimum, at least two comparable sales must be sales in which the builder or developer of the subject property is not involved in the sale transaction.


I usually will use two outside new homes or 1 outside new home and 1 outside resale. Never a problem.

That is what I do too, have been asked for outside of the neighborhood as well. Not a hill I die on, I give them a stupid one outside of the neighborhood as well as the relevant outside new homes/resales inside of the subject's neighborhood.

 

[Fritz in NY]

School District usually indicates a purchaser has kids. Why buy a 3-5 bedroom home if there are no kids? In my market you can go from an A rated school to a D rated in 3-4 miles.

 

[TerryRohrer]

School District usually indicates a purchaser has kids. Why buy a 3-5 bedroom home if there are no kids? In my market you can go from an A rated school to a D rated in 3-4 miles.

Really? Here, you can not purchase a home that isn't in a school district. Where do unkidded folks live in such cases?

 

[Surf Cat]

The rule Terry posted in post #5 is for PUDs and condos.... not for typical suburban homes in a regular ol neighborhood.

Comparable sale requirements for properties in new subdivisions, units in new PUDs or units in recently converted or New Condominium Projects

The OP stated it was "not" in a new development....

Note the subject is not in a new development

I've "never" had to go outside the neighborhood (unless there were no new build sales) on a new build appraisal in a typical 1960s tract.

New Condos and PUDs "always". From what the OP is describing "never". Never been called out on it either.

Having said all that, it is unclear what the op is asking in the sense that if this is in a planned development or a regular SFR. Nor did he state that he included a new build from within the neighborhood.

 

[NC Appraising]

You are confusing "subdivision" and "neighborhood". They are not the same thing

No.

I'm assuming, due to I cannot get inside of the UWs head or the OPs head for more info.

I'm assuming the UW wants two sales from outside of the subjects neighborhood or subdivision or pud.

Did the Appraiser put in a neighborhood name on page 1 or none?

***Not agreeing with the UW...more than likely it's a BS request.

The appraiser had to use three closed sales....I'm assuming they were all built by a competing builder. Did the OP note this in the appraisal?

As for the freddie thing, just trying to give some reasoning or some thought on where this maybe coming from. It happened to me six months ago....the UW wanted two closed sales from outside of the PUD.

 

[TerryRohrer]

The rule Terry posted in post #5 is for PUDs and condos.... not for typical suburban homes in a regular ol neighborhood.

That is not how I read it.

 

[NC Appraising]

Comparable sale requirements for properties in new subdivisions, units in new PUDs or units in recently converted or New Condominium Projects

The OP stated it was "not" in a new development.



I should have been more clear. I understood that. I was just trying to help the op to understand where this maybe coming from and why. He sounded confused as to why they were asking for two comps.

Again, not agreeing with the UW or the stip. It sounds like the UW is mis reading or mis interpreting the guidelines.

Terry is correct assuming the op is not leaving anything out.


Fwiw....op, did you put in a neighborhood name on page 1? And is your neighborhood boundaries the same as of the neighborhood? The UW could be an idiot...this could be why they are asking for two sales from outside of the neighborhood.....

The uw doesn't know the difference between a new pud and a neighborhood....they are just checking boxes.

Just throwing ideas out here....

 

[J Grant]

Another vague query. Half these people never come back , or bother providing additional information. Others do. Wish they would let us know upfront as it does take time to answer these posts.

 

[Fritz in NY]

Usually, In NY we have schools. They are usually near a PUD or other, where a school bus can collect them. What do you have in MONTANA?

 

[Sadie]

If it is Fannie, here is their guidelines-If the subject property is located in a new (or recently converted) condo project, subdivision, or PUD, it must be compared to other properties in the same market area and to properties within the subject condo project, subdivision, or PUD. This comparison should help demonstrate market acceptance of new developments and the properties within them. Generally, a subdivision is considered new when there are limited or no resales or the builder or developer is involved in the marketing or sale of the properties. See B4-2.1-01, General Information on Project Standards and B4-2.3-01, Eligibility Requirements for Units in PUD Projects for the definition of a new condo project or PUD.

I would say that if the subject is not in a new subdivision, then it is an infill lot and you can show acceptance with either/or sales within the subject subdivision and at least one other infill property, it does not have to be new, it just has to show market acceptance for a new home in an established neighborhood. The others seem to be referencing when the subject is a new home in a new subdivision/project. They are two different things.