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Reviewer used 2 active listings

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Apr 24, 2007
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California
I've never had a problem with reviews on my work. But now I have a review appraiser using 2 actives as 2 of the 3 comps on a SFR. And of course one of them is a mobile home. Geezzz! Does anyone know which rule says the first 3 comps should be actual sales? Thank you.
 

hastalavista

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May 16, 2005
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Certified General Appraiser
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California
I've never had a problem with reviews on my work. But now I have a review appraiser using 2 actives as 2 of the 3 comps on a SFR. And of course one of them is a mobile home. Geezzz! Does anyone know which rule says the first 3 comps should be actual sales? Thank you.

For a review?
None of them. :new_smile-l:
 

Richard Carlsen

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Jan 15, 2002
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Licensed Appraiser
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Michigan
Typically, active sales are not used to form an opinion of value but to indicate the upper market value range of a property based on the principle of substitution.

It sounds like this is either a sloppy review or the review appraiser was operating under some specific assignment requirements from the client. The fact that there were no additional sales in the grid may be an indication that he (assuming a male reviewer) concurred with your selection of comps. The client may have just wanted an additional sale and a couple of active listings.

I suggest you read the review very carefully, front to back before you jump to any conclusions about comps.
 

USPAP Compliant

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North Carolina
Mobile home? Not likely, possible but not likely.
 

MNRural

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Oct 11, 2006
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Certified General Appraiser
State
Minnesota
'SALES' Comparison Approach!!!!!!!!!!!!!!!!

Listings are market analysis!!!!!!!
 

Mike Plumlee

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Feb 21, 2007
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Certified Residential Appraiser
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Texas
one of them is a mobile home

Are you saying the reviewer used a mobile home listing comp for a SFR detached subject? If so, the listing part would be a secondary issue compared to the mobile home issue.
 

Mike Kennedy

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Sep 28, 2003
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Certified Residential Appraiser
State
New York
I've never had a problem with reviews on my work. But now I have a review appraiser using 2 actives as 2 of the 3 comps on a SFR. And of course one of them is a mobile home. Geezzz! Does anyone know which rule says the first 3 comps should be actual sales? Thank you.


More importantly, was this an SR3 Review by a Licensed Appraiser?
:shrug:
 

David Wimpelberg

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Mar 30, 2005
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New York
I've never had a problem with reviews on my work. But now I have a review appraiser using 2 actives as 2 of the 3 comps on a SFR. And of course one of them is a mobile home. Geezzz! Does anyone know which rule says the first 3 comps should be actual sales? Thank you.

Actives (I assume that mean properties currently listed for sale) should be considered, as well as pending sales, provided they are available in the normal course of business. Of course they have to be used in their proper context.

There is no USPAP requirement on the minimum/maximum number of sales/listings to be used in an analysis, for either an appraisal or an appraisal review. Certain clients may have specific requirements.
 

Scott Kibler

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Oct 7, 2003
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Certified Residential Appraiser
State
Illinois
Maybe they were an LSI reviewer reacting to the new 2 Active/Pending reporting requirement. :rof:
 

glenn walker

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Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Not normal using 2 listings as comps #1,2,3, but question???? are the active listings in your market lower priced than your sales comparables ???? if so thats the issue, in my area of So CA some areas now have more lower priced active listings than sales just 60 days ago so in that case your closed sales have less weight than active listings, I know this sounds funny because i always ( in bus 20+ years) was told that listings showed the upper ranges of price, very true until a market starts to really go down fastthen the Actives and pendings are all lower than the closed sales ...wow what a mess
 
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