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Required number of listings

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Michael Martin

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Junior Member
Joined
Jan 21, 2005
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Certified Residential Appraiser
State
New Hampshire
I believe I read that FHA requires 2 listings only if property is in a declining market. 1 required if not declining. Could anyone confirm? Thanks,
 

james stephens

Junior Member
Joined
Dec 9, 2004
Professional Status
Certified Residential Appraiser
State
Georgia
Per Mortgagee Letter 2009-09, in declining markets appraiser must include a minimum of two active listings or pending sales. I'm not aware of the mandatory inclusion of an active listing in non-declining markets.
 

Michael Martin

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Junior Member
Joined
Jan 21, 2005
Professional Status
Certified Residential Appraiser
State
New Hampshire
Thanks James - that's what I thought - I've got a client telling me it's an FHA requirement to provide 2 listings - just wanted to make sure
 

Lloyd Bonafide

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Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
James is 100% correct. But, try telling that to some underwriters - some think it is required for stable markets. Also, some lenders have their own requirement for two comps that are active or pending.
 

OminousRun

Member
Joined
Oct 6, 2008
Professional Status
Certified Residential Appraiser
State
Florida
I believe I read that FHA requires 2 listings only if property is in a declining market. 1 required if not declining. Could anyone confirm? Thanks,
If you don't want to run the risk of getting stipped than you should include at least 2 actives or pendings.

The other posts are correct though, not required in a stable to increasing market but there are some U/W that don't realize it. Best to head it off at the pass and include them. It will also add extra support to your estimate of value, so its not the worst thing in the world.
 

Mike Garrett RAA

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Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I disagree...listing prove little to nothing, in most cases. I cite as an example a townhouse project where my three closed sales were from 84,500 to 96,000. The only listing was $120,000 and had been on the market for 299 days. All were model matches.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
I disagree...listing prove little to nothing, in most cases. I cite as an example a townhouse project where my three closed sales were from 84,500 to 96,000. The only listing was $120,000 and had been on the market for 299 days. All were model matches.
But even that one listing tells us at least something about the market and the subject's position. After all, that model-match offering tells us that the subject's MV is likely not $120k or higher. :)
 

Delta85

Elite Member
Joined
Sep 22, 2007
Professional Status
Certified Residential Appraiser
State
Connecticut
I disagree...listing prove little to nothing, in most cases. I cite as an example a townhouse project where my three closed sales were from 84,500 to 96,000. The only listing was $120,000 and had been on the market for 299 days. All were model matches.
I agree. I rarely used listings until it became required more and more over the last year or two.
 

Doug DeMars

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Mar 20, 2009
Professional Status
Certified Residential Appraiser
State
California
The BS of all this is the hand-holding by lender mandated guidelines. Drives me nuts! Half the comps I include are BS comps that satisfy lender "needs". The other half is the solid evidence I need to prove my argument. We may as well make the grid 12 or 15 Comps. Why not...more is better...right? 2 Act, 2 pending, 2 within 60, 2 within 90, 2 within 1 mile, 2 from last year, 2 from when the subject first sold, etc...when does it stop? I should be the one to decide if the reader needs to further confused or enlighted by market evidence when it suits the assignment. What a buch of BS!

(rant off)
 

DMZwerg

Senior Member
Joined
Mar 25, 2009
Professional Status
Certified Residential Appraiser
State
Wisconsin
Thanks James - that's what I thought - I've got a client telling me it's an FHA requirement to provide 2 listings - just wanted to make sure
I can see the conversation now ...

UW: "FHA requirement is 2 active listings"

Appraiser: "Well, if you really want me to revise the report I can pull out the active listing to meet FHA requirements for a STABLE market ... you do realize that <chapter & verse> of the FHA requirements clearly states that 2 active listings are required for a DECLINING market. Are you deciding it is your place to put undue pressure on me and force me to erroneously indicate a market is declining that I have determined is actually stable? If so, may I get your name for when I have to talk to your supervisor please?"


:icon_mrgreen:
 
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