What's the difference?

[PushinValue]

When the Subject property has a recent arms length sale on the open market, some appraisers include this as a comp while others will simply analyze and take into consideration. I am sure there have been posts before with discussion on this matter with differing opinions.


Scenario:
Subject and a model match property next door close the same day after adequate marketing time and are verified to be arms length / market value sales.

Is there anyone who is going to argue the sale next door should not be given the most weight in the report?

What makes the sale next door different than the previous sale of the subject for purposes of comparison?

 

[alebrewer]

We are required to analyze all prior transfers of the subject within 36 months of the effective date of appraisal. It's always been my opinion that a very convenient way to fulfill that obligation is to use the prior transfer as a comp in the sales grid.

 

[shrubberyvaluation]

When the Subject property has a recent arms length sale on the open market, some appraisers include this as a comp while others will simply analyze and take into consideration. I am sure there have been posts before with discussion on this matter with differing opinions.


Scenario:
Subject and a model match property next door close the same day after adequate marketing time and are verified to be arms length / market value sales.

Is there anyone who is going to argue the sale next door should not be given the most weight in the report?

What makes the sale next door different than the previous sale of the subject for purposes of comparison?

Next door could have a different lot or views. I grid it if it's still comparable, not an extensive renovation. Sometimes there are some changes the grid illustrates such as a deck and if markets are changing.

 

[Surf Cat]

Fannie mae allows the use of (gridding) the subject as a 4th comp if it has recently sold for supporting data.

If the model match sale next door is in similar condition to that of the subject when it's sold, why wouldn't it be given most weight? Conversely, if the sale next door differs from the subject in condition, or has different amenities even though it's a model match, another sale within the market area maybe more appropriate to give more weight to.

Not sure what you're referring to on the second question.

 

[Tom4value]

When the Subject property has a recent arms length sale on the open market, some appraisers include this as a comp while others will simply analyze and take into consideration. I am sure there have been posts before with discussion on this matter with differing opinions.


Scenario:
Subject and a model match property next door close the same day after adequate marketing time and are verified to be arms length / market value sales.

Is there anyone who is going to argue the sale next door should not be given the most weight in the report?

What makes the sale next door different than the previous sale of the subject for purposes of comparison?

Include it as a fourth comp. That is accepted by Fannie/Freddie and appraisal practice. Yes, you can give it most weight if you can support it and explain why.

 

[J Grant]

When the Subject property has a recent arms length sale on the open market, some appraisers include this as a comp while others will simply analyze and take into consideration. I am sure there have been posts before with discussion on this matter with differing opinions.


Scenario:
Subject and a model match property next door close the same day after adequate marketing time and are verified to be arms length / market value sales.

Is there anyone who is going to argue the sale next door should not be given the most weight in the report?

What makes the sale next door different than the previous sale of the subject for purposes of comparison?

Every transaction is its own transaction; that is what makes it different. These two happen to be next door, closed same day - fairly unusual ( at least in my area) - did they sell for the same price? It's fine to give the next-door sale the most weight if you want to; that is your call.

I personally do not like to use a recent sale of the subject as a comp for itself unless I have a real shortage of comps or the subject is very unique. We already disclose and analyze the prior sale so it gives no new information- like gazing into a mirror - it also can set up an expectation to appraise it for the exact sale price it sold at - what if the prior sale under paid or over paid or the market changed, or for X reason it might appraise at a different $ MV , Disclosure and analyzing it as a prior sale is a better option, IMO.