Source of comps for appraiser

[Varinia]

I'm a seller and my property is in a small community with no other townhome communities within a few miles. Subsequently, any sales/appraisals seem to be based on comps only on this neighborhood and it's difficult to get the values up.

What exactly is the source for appraisers for their comps? MLS? Zillow?

I'm expecting an appraiser in the next few days and the last sale of a comp was for 315K 3 weeks ago. Mine is under contract for 305K. The previous highest comp was 6 weeks ago for 283K. BUT, MLS had made a mistake initially and reported the 315K sale as 295K. It took us (me and my agent pestering the listing agent to get it straightened out with MLS to correct) until last week to get it fixed. But zillow still shows 295K and I suspect that they' don't adjust once they've pulled the original data from MLS.

Sooooo, my question is, if appraisers get their comps from Zillow - should I put a note in the kitchen for the appraiser to please check MLS listing for that property, to make sure they have the right comp value? Or do appraisers automatically go to MLS directly and I don't have to worry about the wrong value being pulled?

To add to this: The appraisal for the 315K home came in at 259K and the buyer paid cash for the difference. These townhomes are in huge demand and there're bidding wars when they come on the market. Does an appraiser looking at comps see the 259K appraisal somewhere or just the sales price?

 

[JeffSH]

MLS is the direct source where real estate agents enter information. Zillow takes that information and displays in on their site, but no appraiser should be searching zillow over the local MLS database. If the appraiser did use a wrong sale price, that is something that can easily be called out for revision.

Appraisals are confidential. The person who buys the appraisal decides who gets to see it. Nobody else will know the appraised value.

In this situation, where prices are increasing rapidly and there's tons of demand, that new sale price is now an indicator of market value for townhomes in the development. Yeah, the person had to pay $56k cash, but odds are they could resell the property for what they paid. The appraisal came in low because the market is increasing faster than what is able to be supported with just a snapshot of the market.

Edit: Unless you live in a non-report state, the sale price is also recorded by the county to public record. That's how we verify the MLS data.

 

[George Hatch]

Make your case in writing and hand it to the appraiser. Spell out the facts of the matter, and while you're at it feel free to say anything else you want about your property. The appraiser will make their own decisions as to how much credence to give that info but you will at least have had your say.

 

[Varinia]

Thank you both so much. Those are the answers I was hoping for.

 

[Terrel L. Shields]

Anyone who uses Zillow to do anything but identify sales is asking for trouble. I confirm all sales with the deed in the courthouse...even if in the MLS. The MLS coverage in my area is spotty so I do use Zillow, Trulia, Redfin, etc. to ID comparables. I actually start with our assessors because their records are generally within a week of the actual close and so many non-MLS sales occur.

 

[Varinia]

Anyone who uses Zillow to do anything but identify sales is asking for trouble. I confirm all sales with the deed in the courthouse...even if in the MLS. The MLS coverage in my area is spotty so I do use Zillow, Trulia, Redfin, etc. to ID comparables. I actually start with our assessors because their records are generally within a week of the actual close and so many non-MLS sales occur.

OMG, I'm just researching the different sites and Redfin just changed back to 259K (MLS had first shown 295K, then after a lot of back and forth and the listing agent sending over the settlement statement they changed to 259K. Then they adjusted to 315K). They listing agent had to explain the settlement statement to MLS, because it was an unusual case where the appraisal came in at 259K, but the buyer paid extra. Now they switched it back from 315K to 259K, when the appraisal value shouldn't matter, but the sales price.

So, Zillow and Trulia both show 295K.

While we were trying to get it straightened out I had gone to the courthouse last week and looked at the docs and the transfer tax was for 259K price.

Oh, man. This is going to go so sideways.

 

[ramrcdk]

YES: if you have information on Correction of the error and where you have (adequate) information to aid the appraisal for most recent, proximate sales.
Appraisal use is the Grid for "comparable sales", checking first within the same dev', sales expanding the search in distance & time ...how ever far OUT to extract -apply line-differences. Use of Market Change-Time Adjustment could likely be necessary "for pending sale date" change in the market TO current inspection date and the Adequate stream of data extraction for use of a grid adjustment.

Never ever Zillow: as a documented source of information. Perhaps an exhausted check for more research avenues. Anything Zillow has
is NOT documented or solely used as a verified source. Zillow's existence is Advertising.
MLS is 99.9 our "available to verify source information".
Recent Sale: Final Sale Price will be in the MLS data. Unless the cash applied is within the MLS description or found in research, it is likely "whatever the indicated Sale Price" would be used.

Google the Appraisal Form 1004, page 2 to reference the Grid Page in order of Market Related potential variances.
Good for you! I advocate use of information from "all" sources. However, the appraisal MUST meet the Lender's pages requirements
BUT also follow GSE or HUD or VA rules.
The Trump of all Report guidelines is to ALSO be within USPAP Guidelines.

*Generally, most folks are not aware the Appraisal Report is completed following Countless compliances & Rules
where every Lender can have their very own or unique requirements.

 

[Terrel L. Shields]

While we were trying to get it straightened out I had gone to the courthouse last week

It doesn't matter what Zillow calls it. It just needs to be correct in the MLS. These sites are worthless for valuation. They shoot the wounded after the battle, they don't "create" any value and no appraiser should use their Zestimate...

 

[Varinia]

This particular address: 6031 Bayrose cir., East Point, GA has 2 listings in Reddit. One has a unit number 31 added to it. One shows 315K and the other 259K. Both pull from MLS. As long as MLS shows (hopefully) only the 315K I'm good - phew

 

[Lindseyw]

Anyone who uses Zillow to do anything but identify sales is asking for trouble. I confirm all sales with the deed in the courthouse...even if in the MLS. The MLS coverage in my area is spotty so I do use Zillow, Trulia, Redfin, etc. to ID comparables. I actually start with our assessors because their records are generally within a week of the actual close and so many non-MLS sales occur.

Well actually…I’ve looked on Zillow a few times lately because I was getting desperate for some really complex properties and found that FSBO listings get placed on Zillow, not the MLS. It saved me a couple times, BUT if I cannot verify with county records of the transaction then I won’t use it as a comp! Seems like there’s only complex appraisals these days. Don’t forget about the FSBO sales, they usually close at market value. Other than that, Zillow is worthless