What To Do When There Are No Comps

[AnonApprsr]

All I am saying is if you want to play the geocompetence card, than I'll make a statement that unless you know every market within your state, you better not leave your immediate market area. And if you have to, then you better know every market.

That's all I'm saying!

 

[PropertyEconomics]

That's all I'm saying!

Your suggestion was he punt the assignment for geocompetence reasons ... a suggestion you had no reason to make. If he tells you there are no comparable sales in competitive market areas you should just believe him rather than telling him to go out much farther and then saying hes not geo competent ........ Thats All Im Saying!!

 

[Mike Boyd]

Scott,

Do you have any non MH's that would otherwise be comparable? I have very, very few MH's in my market in Virginia. Lot's of them in the market I cover in North Carolina, but not in Virginia. I have used, and would still use a stick built home that is otherwise the best comparable to compare to a MH. I believe that you will find that is acceptable to FHA as well as Fannie Mae if you explain the situation as you have done in your post.

I agree. In your final analysis of value, weight the most similar (preferably a manufactured home). You might also consider a MODULAR.

 

[BROOKLYNVALUATION]

If there are no comps in the subject market area that sold within the past 12 months, and comp #4+ is the best comp, but sold 2 years ago, can you put most weight on that comp?

 

[Verne Hebert]

This horse is just about beaten. But I want to address the term "comparable(s)" .... wierd word.


The term comparable sale is an english term, that a very long time ago I eliminated from my vocabulary.

The only term I use is "transactional data". And yes sir, it is arms length, always. I rarely have what I would consider comparable data (in one piece) to utilize in a report.

I have valued, nearly always, very complex property with very dissimilar data over the past twenty years here in NW Montana; prior to that the Nor Cal Coast, the Gold County in CA and ag in the central CA valley.

Every piece of property can accurately be valued. It just takes time and money.

JoAnne. 40 %? It is rare to see adjustments as low as 40 %. How about over 100%?

Transactional data. That is what we use...and sometime it is "comparable"...what is that anyway, 15 %? I sure don't know, by a definition that we can agree on.

Ask the boys and girls in Vegas. 3 %. Gag me.

 

[David S. Roberson]

The HUD requirements exist for a reason. Not all homes will qualify for FHA financing.

I had a deal last year - a home in an established inner-city neighborhood burned down. The home was replaced with a manufactured home. Of course, I was asked to appraise that home for an FHA loan. After looking at the home and doing the reserach, I notified the lender that there was not data available that would allow me to appraise the home in compliance with FHA requirements. I sent them a bill. They paid it. End of story.

Me too! Me too! I just called a client & quoted Danny's line (that there was not data available that would allow me to appraise the home in compliance with FHA requirements); sorry for the plagiarism. This was a manufactured with an addition on 17 acres of prime land. One comp 20 miles away, sold last year. They say they will pay something for the time I spent on it (not the fee of $400, but at least I'll get something for inspecting a rural doublewide in 25 degree weather). The relief of being free from this debacle is worth the loss, and the client (Appraisal Nation) appeared to completely understand the situation.