Gold Supporting Member
- Jan 15, 2002
- Professional Status
- Certified General Appraiser
You should have added some tasteful art to that post.
3 comps is the "recognized methodology", which USPAP requires "recognized methodology" be used.USPAP does not require 3 comparable sales in the SA. SOW however says we need to do what our "peers" do...and they invariably provide 3 or more sales. The client is a private party and fairly clueless to the appraisal process. They leave the scope of work up to us.
So if you find the one sale that really counts. ...and provide only that to support the SA, are you or are you not violating USPAP? Your client probably doesn't care. But what about our peers?
Odd ball assignment properties often only have one fairly reasonable comparable sale.... OK, like you said, that does not mean you can't opine a Value and weight that one comp. Your right a cost approach might only be the other support you have.I don't believe it would be a USPAP violation, as long as the appraiser explained his reasoning and what attempts were made to try and find a few other sales. I would also assume in this situation, the appraiser would also be completing a cost or income approach. Personally I would use that one true comparable as My number-1 comp , and then include at least two other ones and, make what ever adjustments were required. Even on a private report the reader & user will look through it and the two additional inferior or superior sales would show them why you Stood Hard on the Comp#1.
As far as peers most would probably say the reports value was not adequately supported, and that One sale does not make a market.
So what! I don't care one bit what they think, If I think I need 10 Comps then 10 comps it will be... We are the Appraisers, not them."It used to be standard for us to use 10 comps for rent surveys and 10 comps for sales comps. Times have changed, and user expectations have changed."
Residential or commercial or both?
What year did the 10 comps era end?
I'm sure reviewers and/or UWs didn't want to have to look at 10 comps....
Dude....So what! I don't care one bit what they think, If I think I need 10 Comps then 10 comps it will be... We are the Appraisers, not them.
If OTOH they want 10 comps and I think we only need three, Well I will give them 10 comps ...and weight the ones I think are germane.