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Reporting Prior Sales

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rtubbs

Thread Starter
Junior Member
Joined
Jan 15, 2002
The following is a statement made by the Alabama Real Estate Appraiser board regarding the USPAP changes for 2003:

"...Fannie Mae requires an appraiser to analyze the last sale of the subject and the last sale of all comparables, regardless of when the sale occurred."

I have searched the FNMA selling guide and cannot find that requirement. Anyone know if it exists and where it's located?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Ron,

Here's one. I'm searching for anything additional.

XI, 406.06: Appraiser's Comments and Indicated Value (06/30/02)

The appraiser's analysis for a property should include narrative comments about any prior sales of the subject property and the comparable sales, as well as about any current agreement of sale, option, or listing of the subject property. The appraiser's comments should also reflect his or her reconciliation of the adjusted (or indicated) values for the comparable sales and identify the sales that were given the most weight in arriving at the indicated value for the subject property. For two- to four-family properties, the appraiser should also provide an evaluation of the typical purchaser's [Page : 1168 06/30/02] motivation for purchasing the property and an analysis of any current agreement of sale, option, or listing for the subject property.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
This is from: XI, 102.02: Unacceptable Appraisal Practices (01/29/02):


• Failure to analyze and report any current agreement of sale, option, or listing of the subject property and the prior sales of the subject property and the comparable sales;

There is no time limit on this one.
 

rtubbs

Thread Starter
Junior Member
Joined
Jan 15, 2002
Wow, I was searching the selling guide for "last sale" and it didn't show up. I wonder how many of us are not reporting prior sales. I'll have to admit that I have not been

Another question: I wonder why the selling guides makes no reference to age but the Fannie Mae form limits the sales history to one year?
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Wow!

It looks to me like we will now be doing title searches on each and every property we ever appraise and on every comp we ever use. How else are we going to get the TOTAL sales history for a property? Does this mean we have to do a sales search back hundreds of years? :( What will our fees have to be :?: How long will the search take :?: Imagine the turn around time under the new rules :!:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
This may not work in all markets but it does in mine.

1. I first do a CMA on my MLS, use the grid system for one square mile, do not limit with dollar value, style, or size.

2. The I modify the cma for solds only and become style, size, and features concious. From this list I select my comparables.

3. We then go to the on line public record and look up the subject and the comps. This is especially useful since it becomes our second verification of the sale and gives us a comparison of the square footage with the MLS. On that look up it shows the sales history of the property. If I see a sale within the past three years, I note it and move forward.

This only takes about 5 more minutes of research and produces a good work file to comply with USPAP. I keep the MLS info and county info in my work file for the required time limit. I also realize some of you do not have good public records but we do and that is the reason I like to limit my work to two counties where I know I can depend on the data.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
I agree with Mike G and I do realize in some states it will be difficult. And the 2003 USPAP recognizes that. But if the information would be readily available to a reviewer or your state board--DO IT!!! Here in Arizona, the assessor's offices (and the reporting services get their information from the assessor's offices) has the last transfer of ownership with the sale date and sale price noted on each parcel. Sometimes it needs to be researched further because that last transfer might have been between relatives or change in type of ownership and is would not be a sale--so have to do some easy researching.

Also, remember the URAR form was developed in 1993, the 2055 form was developed in 1996 and Fannie Mae forms are only changed about every 5-10 years, so the Fannie Mae forms are not going to be in sync with USPAP. That also applys to Section 201 (updates) effective 6/30/2002. 2003 USPAP goes into effect 1/1/2003, so that means all appraisers have to be professional and know and practice the 2003 USPAP regardless of what the form says. Same way with the certification, Fannie Mae's is from 1993--so again professional appraisers have to add a second addendum with the certification that is in compliance with USPAP. As professional appraisers--we are supposed to THINK!
 
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