Using A 20 Mile Radius As The Neighborhood

[djd09]

change continuously

They could be in a transitional state. Is there a box to check for "Undefinable".

 

[J Grant]

"I have used a 20 mile radius from the subject as my neighborhood."
This says nothing about comps. Absolutely nothing! You act like we aren't allowed to pull comps from outside the neighborhood. In regards to the borders of the neighborhood, I don't know for sure. If he's going out 20 miles and crossing into other Townships, then OP is probably expanding past the true neighborhood and still calling it "neighborhood". That is a no-no. If the neighborhood produces low sales, then you can go out of the neighborhood to get comps for the SCA, but the neighborhood boundaries do not change. It is misleading to portray comps as a neighborhood sales when they are not. They are sales outside of the neighborhood, therefore, the appraiser must have due diligence in making sure that they are on equal demand areas or adjust if they are not.

What in the world are you talking about? I NEVER said anything in my posts about acting like we are not allowed to pull comps from outside the neighborhood. I have zero idea why you keep challenging me about absolute noting in this thread.

 

[Eli]

They could be in a transitional state. Is there a box to check for "Undefinable".

Everything is relative to credibility and reliability. Public trust .

It's all those narrative elements and qualitative analysis that appraisers don't like. If they would have left USPAP alone from the original version, we would still have many more report and appraisal options.

It's a step by step process on neighborhood boundaries which are constantly changing but don't dare limit the neighborhood boundaries to comp selection. That is dumb. Don't expand neighborhood boundaries to include comps either. That is dumb too,

 

[residentialguy]

What in the world are you talking about? I NEVER said anything in my posts about acting like we are not allowed to pull comps from outside the neighborhood. I have zero idea why you keep challenging me about absolute noting in this thread.

This is about neighborhood boundaries, yet you keep on and on that the lender said OP can't search for comps. OP never said that, nor alluded to that. Examples of you jabbering on about searching, which is why I keep challenging you:

Above from OP post, sounds like the client is telling him where to search (by saying he can't "do that".)

Banks don't tell appraisers where appraiser "should" search.

Every post I've made on this thread supports appraiser going where they feel they need to find the best comps. If it's a rural, spread out area, the appraiser might have too narrowly identified "the neighborhood".?
With the OP it sounds like in part it is a client problem.

I'm less concerned with use of term neighborhood , then a client dictating to an appraiser where they can and can not search for comps.

 

[J Grant]

Posts 3, 4, 9,22, 25, 31, 38, from various other posters talked about comps...since it does relate to neighborhood boundaries.

But to make you happy I will only talk about neighborhood boundaries , peace.

 

[residentialguy]

Posts 3, 4, 9,22, 25, 31, 38, from various other posters talked about comps...since it does relate to neighborhood boundaries.

LOL...yes, they do talk about comps. First post you mentioned (#3 posted below) correctly states that the neighborhood boundaries do NOT limit your search parameters.

Is it so hard for you to just admit that you're wrong? ie; "oops, you're right, Res... The lender never said anything about where an appraiser can or can't search for comps".
Peace.

Comps do not have to be from the "neighborhood"

 

[The Warrior Monk]

The market for many properties isn't defined by an arbitrary radius (unless the market specifically denotes that). The market for many properties is segmented; i.e., can be defined by various areas that are not contiguous.

 

[Michigan CG]

 

[J Grant]

"JR1972, post: 2745777, member: 146525"]Working on a sale in a very rural area of Wisconsin. The subject consists of two reports: One is for a manufactured home on one acre and the other is a bermed/earth home on 41 acres. Very few comps for both properties as manufactured and earth homes are rare in the area. I have used a 20 mile radius from the subject as my neighborhood. Bank is telling me that I can't do that and that I have to use a Township or partial area of the County as my designated neighborhood. Any thoughts?[/QUOTE]"

ResGuy, above is original post from the OP. In it he mentions COMPS, which introduced comps as part of the conversation. If you want to say the thread is supposed to be only about neighborhood boundaries, fine. I see your point where per the post bank telling OP he can't do that relates to designating a neighborhood as a 20 mile radius.

Whether the OP's drawing a radius of 20 miles from subject was the best call of the neighborhood ,who can say.. The OP , as often seen with question threads, did not participate after page one. I suppose his question was answered that bank can not tell appraiser what the neighborhood is, such that he has to use a Township or partial area of the county.

 

[Meandering]

Someone should start off by defining neighborhood, by other than geographic monuments,
and then proceed with why some comps are in the market area, yet not within the subject's neighborhood.