Sale date of comp after effective date by 1 day

[Mztk1]

It's not solely about the closed sales. It never really was. By now everyone should have a pretty good idea as how how effective Fannie guidelines are.

It's about ALL THE MARKET DATA. It always has been.

If it was a pending sale and the meeting of the minds took place as of the effective date of your appraisal, why wouldn't you consider it as either a primary or secondary piece of market information?

Because it is a heck of lot easier to provide three sales that were closed as of the effective date with the sale in question as a fourth sale, then it is having to answer the stupid questions that are going to follow.

Sometimes we shoot ourselves in the foot by doing something that is 99% of the time going to waste more time and cause more aggrevation then it would have had we just had to the foresight to see what was coming.

 

[TJSum]

Ever used a sale after the effective date of a retroactive appraisal? What is the difference?

Is the recent sale the best indicator of value? What argument would you make for not using it if your answer was yes?

Edited to add:

Ever been reviewed and had a reviewer include a comp that hadn't closed as of the Effective date of your report?

Ever done that on a a review?

Not one of the posters yet has said not to use it. It is how it should be presented is the debate.

I think most appraisers would be screaming bloody murder if they got a bad review based on not using a sale as a closed sale that took place the day after the effective date. Can't have it both ways. Yes, I have done reviews and too many times the appraiser has only provided three comps, one of which that settled after the effective date and the appraiser tried to hide that fact by only quoting the month of settlement instead of the date.

 

[Couch Potato]

The fact that this is even a discussion is frightening.

Frightening maybe, but hardly surprising. :new_all_coholic:

 

[Mike Kennedy]

closed is closed and contracted is contracted - use BOTH (3closed+contracted+actives when appropriate).

 

[Joyce Potts]

closed is closed and contracted is contracted - use BOTH (3closed+contracted+actives when appropriate).

The point is, it's appropriate. It always was. What a profound statement.

 

[Joyce Potts]

Because it is a heck of lot easier to provide three sales that were closed as of the effective date with the sale in question as a fourth sale, then it is having to answer the stupid questions that are going to follow.

Sometimes we shoot ourselves in the foot by doing something that is 99% of the time going to waste more time and cause more aggrevation then it would have had we just had to the foresight to see what was coming.

Because it's easier is your answer?

How professional.

 

[Rufus]

Additional Threads on This Topic

Effective date is July 10. Comp closed July 11. Ok to use?

Tim,

You can find additional information in these two similar threads here at the AF:

Effective Date & Comparable Sales

Comps sold after effective date

 

[Farm Gal]

OH FOR PETE'S SAKE!!!

Use the dang SALE that CLOSED as of your signature date on the report - then add narrative to explain that while it was pending as of the effective date it CLOSED prior to the signature date on the report and *is/is not* the best representation of the current market available in the way of sales which have recently closed. I'd put the sale date in the grid* marked with an asterisk, state the contract date in the narrative with my explanation and move on...

Agreed that it had the meeting of the minds prior to the effective date - I don't care if you are paying in cash or gold bars darn few residential sales actually close 24 hours or less after agreement/contract.:Eyecrazy:

and while some clients might kick about it who in this day and age is using 3 sales and getting away with it anyway?!?!? you probably had a 4th anyway!

ITS A FORM NOT WHAT YOU WRE THINKIN' !

 

[Tim Schneider]

I get a request for a 4th comp only about once a month.

 

[Mztk1]

Because it's easier is your answer?

How professional.

In what way isn't it professional? Reducing unnecessary hassles for a client is very professional.

I have a sale that is pending on the effective date of the report and I am reporting it as a fourth sale, pending, and including three closed sales, and then stating the pending sale closed the day after inspection.

What is unprofessional is to cause more questions by using a sale that was pending on the effective date as one of three comparables on a mortgage lending report and listing it as closed. You're just asking for headaches and dishing them out.

The only thing more unprofessional than that is to change the effective date of the report without revisiting the property (interior and exterior) just to make it fit.