Using comps after appraisal effective date

[Patricia Doyle]

Can I use a comp which sold 2 days after the effective date of the appraisal? I'm getting arguments from both sides, but it is a great comp!

 

[Lloyd Bonafide]

You have a really excellent pending sale, but that might be it, and I would comment that it closed two days later.

 

[Verne Hebert]

Solve the problem.

Get a trip charge to go out to the property and change the effective date.

Everybody loves a great comp. Everybody loves a fresh sale. Especially in this marketplace.

No more argument.

 

[OminousRun]

I'd use it and say it closed after the effective date of the appraisal, but was under contract before the effective date of the appraisal and settlement date of the comparable sale did not change the market influence of the comparable sale, but acted to confirm it.

Just explain, explain, explain.

 

[Mike Kennedy]

Routinely use one (when available) a confirmed Contracted Sale as 1 of at least 4 comparables (3 confirmed closed sales), citing BOTH the Contract Date and Pending Close Date - if it's scheduled to close after the Appraisal Report Date per the Listing Agent. If no confirmed/reporting closing date has been set - simply report the confirmed Contract Date.

 

[incognito]

Do another drive by of the subject, explain the full inspection and drive by inspection dates in the report, use the drive by date as your effective date, and you are good to go.


Technically it is the contract, not the closing date of the comparable that matters anyway! If I didn't do the above, I would use the comparable as a primary sale, and adjust for time (if indicated ) from contract date of the comp to effective date of appraisal. I know of no guideline which demands that the sale have been closed as of the effective date (although you probably will need a total of three which have closed as of the effective date, so use 4 comps.

 

[CANative]

As far as I'm concerned (in the land of no comps) a comparable sale that closed after the effective date but before the report date is a good comp 1 sale. Just explain.

 

[Scott R Marshall]

I agree with most here. Typically what I do is include it as comparable #4+, representing it as a pending sale as of the effective date of the appraisal and explain that its actual purchase price has been utilized as it sold between effective and signature dates.

 

[Lee Lansford]

Can I use a comp which sold 2 days after the effective date of the appraisal? I'm getting arguments from both sides, but it is a great comp!

It CLOSED 2 days following the effective date, yes?

It might make an excellent 4th comp as a then pending sale (and, with the sold price known).

 

[Lee Lansford]

Do another drive by of the subject, explain the full inspection and drive by inspection dates in the report, use the drive by date as your effective date, and you are good to go.


...

I don't think so...not when communicating the appraisal via the URAR/1004.