Subject as it's own comp.

[Tom Giraldin]

I have a SFR that sold 3 mos. ago, they are taking out a 2nd. Very few comps. Can I use the subject as a comp. the adjustments would be for time (declining market) and seller help close, the other adjustment. this puts the value down 10K from the day they bought it and the only other 3 comps support the lower value

 

[Mark to market]

Per Fannie
The appraiser may use the subject property as a fourth comparable sale or as supporting data if the property previously was sold (and closed or settled).

 

[Tim The Enchanter]

Absolutely. What sale is more similar?

 

[bart nathan]

Sure if you want a UW stip

 

[Financially Feasible]

Sure if you want a UW stip

Let the underwriter stip you all they want... I concur with the rest of the posts to go ahead and use it as a comp... but only as an additional comp.

 

[Kevin Mc]

There was a time that if you didn't grid it as Comp#1 you would be called on the carpet. times change, use it as a fourth.

 

[Joyce Potts]

That's the biggest oxymoron I've heard this week.

Cite the last sale and analyze it accordingly as to arm's-length, etc., but you can NOT use it to comp itself out, regardless of the time aspect. That is narrowing the gene pool a little to closely, IMO.

 

[Fred]

That's the biggest oxymoron I've heard this week.

What was the second biggest?

If you analyzed the recent sale of subject, I would think you are using it as a comp, even if you don't put it on the grid. Try appraising something for 300 and report that it sold a month ago for 200.

 

[Kevin Mc]

Cite the last sale and analyze it accordingly as to arm's-length, etc., but you can NOT use it to comp itself out, regardless of the time aspect.

Joyce that is wrong. You most certainly CAN use it as a 4TH and given the conditions of the market posted by the OP, it most certainly should be gridded. With a declining market, 3 comparables to support the market and the time adjustment to the subject sounds like solid appraisal practice to me. Re-read the original post. There was a time back in the early 80s where things like three year sales history etc...was never discussed in an appraisal report. If the subject did in fact close within 6 months of the effective date, lenders expected it to be gridded.

 

[Frederick]

Whenever I include something in the appraisal for mortgage lending purposes that is atypical I copy and paste the FNMA guideline relating to it for clarity and to save the reviewer or underwriter the trouble of looking it up. It portrays an appraiser who is knowledgeable and follows guidelines and builds credibility between you and your client.

Per FNMA Guidelines: XI, 406.02: Selection of Comparable Sales "The appraiser may use the subject property as a fourth comparable sale or as supporting data if the property previously was sold (and closed or settled). If the appraiser believes that it is appropriate, he or she also may use contract offerings and current listings as supporting data."