Sales and/or listings?

[Jeff Horton]

Does USPooP require us to list or disclose any listing of a subject property within the last year or just any sales? Or are to just take this into consideration?

This has come up a couple to times recently. I normally do both but I have had lenders that don't want listing shown on the appraisal.

 

[Don Clark]

Jeff:

USPAP, 2002 edition, page 20, lines 702-710, paraphrased here for brevity:

.............analyze any current agreement of Sale, Option, or Listing of the property, if such information is available to the appraiser in the normal course of business.

.............analyze any prior sales of the property that occurred within the following minimum time periods:
.....one year for one to four family residential properties, and;
three years for all other property types;and
reconcile the quantity and quality of data available and analyzed within the approaches used and the applicability or suitability of the approaches used.

You should also be aware that there is a proposal to change the one year time frame and make a reporting period of three years for all property types.

Also, if you believe that noting past listing activity over a period of time provides information that is pertinent and or necessary to the present assignment, and it's exclusion might make the report misleading, then use that information. As an example, if the subject has been listed 5 times in the past 2 years, and did not sell, and now the owner wants to refinance at a higher value than the property would not sell for, I consider that information applicable to the present assignment.

I hope this helps in some small way.

BTW, using the phrase "USpoop" may be cute but it diminishes your credibility as a professional, and may cause a casual observer on this forum to believe that collectively appraisers are less than professional.

Don

 

[Tom Hildebrandt]

Don

Ditto your comments, nice informative response!

Regards

Tom Hildebrandt GAA

 

[Dee Dee]

The only reason that a lender wouldn't want an appraiser to disclose prior listings is because they're afraid that by doing so it might kill the deal, otherwise it wouldn't matter.
I wonder what would happen if you added THIS to your addendum:
"At loan officers request, prior listings within the past year were not disclosed".

It's becoming very obvious that the underwriters are looking for prior listing information. I've had numerous appraisals wherein the underwriter has come back and specifically requested that I disclose ANY listings within the past year, or specifically to disclose if the subject property has not been listed. Perhaps it's just my area?

 

[Caterina Platt]

Dee Dee,

I've had the request as well.

In my MLS, if the listing did not produce a sale, the expired, cancelled, or withdrawn MLS data will only be available for approximately 6 months. If the market is active and the numbers are being used quickly, that time frame may shorten. I've run across situations recently where I know for a fact that the sale had been listed for quite some time prior to selling, however the only available data was the current sale. Troubling when you want to reflect the true days on the market.

I always say something to the effect of 'None per MLS data/Public Records' just to clarify and CYA.

 

[Dee Dee]

Caterina,
I use the FIRREA form in my reports, and under the History of Property section, Current listing information, I put in "The subject property is not found currently listed nor has it been listed within the past six months per local Multiple Listing Service".
If the property has been listed within the past six months I put in the listing price along with the listing agents name and phone number.

Although it doesn't appear that USPAP requires that we disclose prior listings, I'd be willing to bet that if the loan went into default we would certainly be asked why it wasn't mentioned.
CYA is right....because you can bet that the LO making such requests to turn our head won't be left standing accountable.

 

[Larry Lyke]

USPAP, 2002 edition, page 20, lines 702-710, paraphrased here for brevity:

... analyze any current agreement of Sale, Option, or Listing of the property, if such information is available to the appraiser in the normal course of business."

The LO may want the Listing information left out of the appraisal to broaden the potential sponsors or investors it will attract.

As I've mentioned before, the investor is the one that wants to know if the property has been on the market within the last 6-12 months, WHICH is an alert that the HO was intent on selling the property, WHICH is a possible red flag that the HO hasn't given up that efort and MIGHT pay off the "new" investor right away after the investor has just paid all the expenses to CREATE A NEW INVESTMENT.

Private investors get the cream of the crop and pay a premium to get it. AND the sponsor will also find himself in disfavor having sold such a loan to THAT investor.

 

[Mike Garrett RAA]

Dear DEE DEE

Wanna lose your license? Failure to comply with USPAP is grounds for loss of license, at least here in Colorado. Why would you let the loan officer influence your decision to comply with the rules.

Do you think the fact the subject was offered for sale and didn't might reflect what it is worth? :wink:

 

[rtubbs]

Jeff, USPAP does not require the reporting of a prior listing of the subject property. If it ain't listed, I don't report it.

However, I do report current listings and I report all info. e.g., I report the property "is currently listed at $X and was previously listed for $Y". "$Y" may either be higher or lower. I'm seeing too many instances of Realtors increasing the price in MLS after a property is under contract to cover all of the Ameridream, Nehemiah, etc., costs.

Ron in Alabama

 

[Larry Lyke]

It's 'Hit on Dee Dee Day' --

"The subject property is not found currently listed nor has it been listed within the past six months per local Multiple Listing Service".

Would you consider my rewording of your effort?

"Subject property has not been MLS listed in past 6 months."

Same information, half the effort. [Smile]