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Question On Sales History

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Larry Davis

Freshman Member
Joined
Mar 20, 2002
I have a new lender that has repeatedly wanted a five year sales/listing history instead of the standard 12 month history. Of course they want it for free. Is there any liability for this? For the most part after three years the data is not all that accurate. It seems they are wanting a free title search. How have others handled this?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Umm better pull out your USPAP 2003... that would be a minimum of a 3 year saleshistory regardless , and whatever your form and/or client supplimental requirements agree upon for the listing history....
that said :p
~~~~~~~~~

Never had a client ask yet...(very loud KNOCK on wood).

not knowing your market or resources, it is hard to answer:

If I did get asked to do this I would :

1. Always cite sources and reasons for limited reliability of search beyond whatever 'reliable' parameters you normally fell comfortable with.

2. Calculate my average additional time expenditure for such searches, multiply by 1.6 to permit for the weird ones, and probably still double my usual coyote pelt expectation for 'really idiotic after the fact requests for data research'.

What I am saying is that if the additional data is not available from a reasonable source, explain why this is going to REALLY cost them if they really have to have it they are REALLY going to have to pay a commensurate fee.
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
2003 USPAP 1-5 (a) requires a three year minimum on all properties. These are the minimum standards. You can add to them though if you or your client choses. I would come to some sort of agrement on this though. Here we are a disclosure state so all sales will be easily found. The local MLS only has 3 years worth of listing information. So the three years is what I would provided them with.

So I would do something like this. 123 abc street sales history as follows sold on 04/03/98 for $zzz,zzz then sold on 04/03/00 for $zzz,zzz and is currently a pending offer on 04/03/03 for $zzz,zzz the listing history as provided by the local for the past three years is 04/03/00 listed for $zzz,zzz sold for $zzz,zzz then was listed on 01/03/03 listed for $zzz,zzz taken off market on 02/15/03 relisted on 02/17/03 for $zzz,zzz when an offer of $zzz,zzz was made and accepted on 04/03/03.

IMHO no extra liablity since you are listing what is public information unless you are in a non disclosure state.

Ryan
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
:huh: Never had a request for 5 years. However, it's just a matter of my standard research that I get the last sale of all comps. Now if it is really old (like 10 or more years ago) I just list the year, deed book and page, and let it go.

I have 2 reasons for my method. 1. For me, the data is easy to get. I get it on line, or from the tax card on line. 2. In my rural area, it helps to show a steady progress of appreciation, or lack of :p .
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
To the best of my knowledge...the 3 year rule only applies to the sujbect property. I have made the decision not to provide any more data than is absolutely required.

Can you say, "it ain't my job"????
 

Roger

Junior Member
Joined
Jan 24, 2002
Professional Status
Certified General Appraiser
State
Missouri
I have had more than one lender ask me to make a statement, on the appraisal, to the effect that I have done a search of sales of the subject for the past three years. I have started to note the date that the last warranty deed was filed, regardless of the date.

As we are in a non disclosure state, unless the sale is thru MLS, I have a Book & Page, and date, but no sales price.

As I understand it, the last sale data, within three years, should be noted, if it is available thru normal research. I note it, if I can get it online, but I don't do a search at the court house. That's up the the title company, IMHO.

My standard disclosure notes that this in a non disclosure state.

Whenever I get to talk to the owner, I always ask how long they have owned the property.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Damn, I love my county! Sales history right on line goes back 10 years. Could that be because we have a Republican in the assessor's office?
 

Larry Davis

Freshman Member
Joined
Mar 20, 2002
I appreciate all the info. I got the three year sales history on file, but after that there could be missing data. For instance, the seller bought the property as a bank foreclosure in 2001. The story by seller is that a relative foreclosed on it in 2000. The foreclosee had to have bought it from someone at sometime. However, The MLS, Redlink, and Tax Records show no data on any of these sales. Therefore, all of the data is supplied by the seller as the source. After all, even if the data is good for five years, only a true full title search can uncover liens, title gliches, etc. Even properties title searched by a closing attorney have been found to have invalid warranty deeds. Opps, someone other than the buyer owns the property. Thats why there is title insurance. I just don't want to get sued for missing info. It's not that I can't search five years, heck, I'll search by to the creation of time. Unfortunately, the data services haven't been around that long, and I don't trust that they are that good. I just see this as a way for the lender/bank to avoid a title search, and if there is a problem, blame it on the appraiser. I don't want to be their heavy for FREE.

Hay, I like the old guy! Don't give out too much info. My feeling is its like taxes. In many cases you don't have to fill out the balance sheet, and its best to leave it blank. But you better have it filled out just in case for the record/file. My appraisal files contain a whole lot more than whats on the URAR.

Thanks for the reminder on the three year rule! I knew I would learn something by posting here.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
BTW, the 3 years for comps are in the Fannie supplemental regulations, not USPAP Standards.
 
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