Subject as a Comp

[Doug Bennett]

The comp would be an arms length transaction as the OP noted earlier. The current sale is non-arms length. Unless the subject changed significantly in the past 3 months its going to be the best locationally and physically...what you attest to in your certification if using a fannie mae form.

I missed the OP reference. In truth, I was taking a shot at wondering what the reviewer's reluctance to accept the Subj as a Comp might have been. That aside, personally, I would always look for a Comp other than the Subject itself as that scenario is likely an automatic red-flag for our friends on the other side of the report.

 

[Doug Bennett]

I missed the OP reference. In truth, I was taking a shot at wondering what the reviewer's reluctance to accept the Subj as a Comp might have been. That aside, personally, I would always look for a Comp other than the Subject itself as that scenario is likely an automatic red-flag for our friends on the other side of the report.

PS . . . I have had my Certified license since 2007. Not sure why my tag still shows me as a Trainee . . . no big deal.

 

[shrubberyvaluation]

This thread is evidence in itself why its best to avoid land mines when possible.

Might as well always hit the target so you avoid that land mine also I guess.

 

[alebrewer]

Once I have the comps, in my mind it's like a work of art and I can imagine where the appropriate comps fall into place.
If the comp is relevant even if unorthodox, Fernando knows it should be there.

Sometimes you come up with true gems, Fern. I agree wholeheartedly. In fact, when I'm doing mentorship, I tell folks to treat the SCA as a painting. And much like a painter would 'sketch' in the horizon, or sun, or whatever - PRIOR to actually painting, I like to put adjustments in the grid just as placeholders. THEN I start painting (or analyzing). Sometimes it turns out those placeholders shouldn't be there, and - more often - it turns out the placeholder values are quite different than what I started with.

 

[shrubberyvaluation]

If you were buying a house and it sold 6 months ago on the open market would you not look at it to consider what to offer? I'm not saying this is the only data point, but would you really just ignore it?

 

[glenn walker]

Might as well always hit the target so you avoid that land mine also I guess.

Uncle Billy retired SREA would say when the appraisers comes in a Purchase Price he has four to five people on his team. The Buyer-Seller-Two Realtors and a loan officer. I would laugh and say what about the reviewer ? he would laugh and say well let him cut the value and tell everyone it's all his fault LMAO

 

[Fernando]

Sometimes you come up with true gems, Fern. I agree wholeheartedly. In fact, when I'm doing mentorship, I tell folks to treat the SCA as a painting. And much like a painter would 'sketch' in the horizon, or sun, or whatever - PRIOR to actually painting, I like to put adjustments in the grid just as placeholders. THEN I start painting (or analyzing). Sometimes it turns out those placeholders shouldn't be there, and - more often - it turns out the placeholder values are quite different than what I started with.

Same thing when I'm driving and looking at comps.
I drive by and see the comps and you know which comps you have to use and which are the best.
It's already in my head how my SCA is going to look.