Subject as a Comp

[alebrewer]

No easier way to analyze the subject's prior sale than to grid it as a comparable...

 

[glenn walker]

We have 6 comps.

I was saying the best three comps including the comp as the subject...all adjust to similar amounts---right around $390k mark.

Sorry for the confusion.

And what is it without the Subject ? With 5 other comps there should be no difference in value.

 

[Vermonter]

Subject sold 3 months ago in cash to mom, and now, it is being sold to her son.

Have the exact same thing going on being inspected tomorrow, except the house has been moving thru family members for the past 4 sales.

While it's nice to have, especially if your comps aren't super similar (common for me), I would only use as comp 4+ and then only if it were an arms length sale.

 

[Terrel L. Shields]

again, place it 4, 5, or 6...not 1, 2 or 3.

 

[glenn walker]

We have 6 comps.

I was saying the best three comps including the comp as the subject...all adjust to similar amounts---right around $390k mark.

Sorry for the confusion.

Easy make it $390K using your 5 other comps and be done

 

[Sid Holderly]

Like Terrell, but it will likley fowl up the big AMC UAD correlator and return as a request for change or more comments, reguardless how many you have in the report.

 

[alebrewer]

I've never had anyone question me for gridding the subject's prior sale as C4-6.

 

[Bob Ipock]

The sale by Mom to son was not an arms length sale.

 

[Bob Ipock]

Does anyone know what USPAP says for using the subject as a comp?

The underwriter wants it removed; however, I think it is necessary to produce credible results.

Subject sold 3 months ago in cash to mom, and now, it is being sold to her son.

I think it reasonable to have it in the report with appreciation applied, especially since 2 of the other closest comps bracket the adjusted value nicely.

Comp 1 after adjustments 389k
Comp 2 after appreciation $392k (subject)
Comp 3 after adjustments $394k.

Thoughts?

How about reading USPAP?

 

[CCAAMO]

Since you are required to report and analyze the subject's prior sales and transfers for the past 36 months, you do not need to added as a comp. If you feel it was arms length indicate in the reconciliation that the prior sales was taken into consideration.