WHY they were the best comparables?

[Tim Hicks (Texas)]

I believe the term should be "are considered by the appraiser to be the most similar sales available". After all, we are expressing our opinion and another appraiser might consider other sales more similar. After reviewing many reports, the comp selection is one of the most abused sections of an appraisal report. Since doing review work, I make it a point to specify that I consider my sales to be the most similar, not the "best sales available".

 

[jtrotta]

Will agree with Tom H. for the most part , but in essence I believe the Lenders are actually following "FNMA" guidelines, so that the product can be Sold in the secondary market. The reports need to meet a certain criteria and then it becomes satisfactory. 8)

Good Luck on your explanations

 

[Tiny280]

Kindergarten - Underwriters...so that's where they recruit them :!: :wink: :!:

 

[Thomas N. Morgan]

I had always interpreted the question to mean, "Why weren't there some better comparables"? The answer to that could go on for pages and require a week or more of research into the local housing market, to determine why there weren't more sales of that sort of home in the subject neighborhood within the specified time frame.

After reading your posts, I think whoever first framed that question meant to say, "What were the characteristics of the comps you cited that caused you, as an appraiser, to believe they were most indicative of the value of the subject, keeping in mind the restrictions of time, place, etc., that we place on the use of comparables".

Or did they mean something else? :?: . I first heard that statement in about 1985 from a local underwriter who was presiding at a seminar for appraisers. She was very dogmatic and spoke to us in tones as if she were very angry and very irritated. That was my first, and lasting, impression of underwriters.

I had never used, and still haven't used the "best available" statement, anyway, having seen it many times on the reports I was reviewing.
It's funny how a bad phrase, such as "Why were they the best" will through usage over time, take on an aura of authenticity and will become sort of a litenany among certain groups, to be repeated over and over.

By the way, for the questioner. The use of that form supplied by Athena is entirely optional.

Thomas N. Morgan (Florida)
State-Certified Residential Appraiser 0000052
[/i]

 

[Carnivore]

Thomas,

The problem we have is that we are trying to respond to a negative. Like you said it could take weeks to explain something like that. This would be way outside the scope and purpose of most reports.

Heres a pretty good example of heading off the negative:

Comments on Sales Comparison

Suggested six month time guidelines for sales 3 & 4 were exceeded in order to utilize the most similar properties within the subject's immediate market neighborhood. The sales in the subject submarket for the past
12 months were researched and considered as possible comparables. Those chosen are considered to be the best substitutes for the subject property taking into consideration all of the subject's attributes. Each
comparable was adjusted for physical and locational differences in comparison to the subject property.