Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What does one go by when there are no recent comps in a neighborhood? The last comps of houses of this model in this community were over a year ago. The other models are much smaller in size. There are no other large houses of comparable size in adjacent communities. Do we rely on those comps of over a year ago? Your thoughts?
It depends on your Lender's guidelines. The appraiser can either go back in time and make time adjustments if needed. FHMA will accept that with an explanation.
Or use the smaller sales and end up with a large GLA adjustment which will most likely exceed FNMA Guidelines. But, again, FNMA will accept that with an explanation.
Or use a combination of 3 recent sales that are smaller in GLA and add a 4th Comparable Sale that is older with a time adjustment, if necessary.
It will help if you/the appraiser can show that there ARE houses of your size in the neighborhood but just that haven't sold in the past 12 months.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,326,702 times
Reputation: 6472
I used to do Broker's Price Opinions (BPO's). I had one that I could not find a reasonable comp for. BPO company says go back farther and expand the geographic area. I do, nothing. Go back even farther and take in the entire county.
I used to do Broker's Price Opinions (BPO's). I had one that I could not find a reasonable comp for. BPO company says go back farther and expand the geographic area. I do, nothing. Go back even farther and take in the entire county.
Found one! It was the subject property.
Actually, Fannie Mae allows the subject as a fourth comp. It can be your best comp!
I used to do Broker's Price Opinions (BPO's). I had one that I could not find a reasonable comp for. BPO company says go back farther and expand the geographic area. I do, nothing. Go back even farther and take in the entire county.
Found one! It was the subject property.
I am a rural appraiser and rarely find sales that are truly Comparable to the Subject. You just end up adjusting the daylights out of it.
Yes indeed. It's why I quit doing them. The QC departments kept kicking stuff back at me. "Your adjustments are too big".
As the poster above me said, they are guidelines. They can't "instruct" us appraisers that way .... that is now against the law. As long as the adjustments are explained and supported they will work.
What does one go by when there are no recent comps in a neighborhood? The last comps of houses of this model in this community were over a year ago. The other models are much smaller in size. There are no other large houses of comparable size in adjacent communities. Do we rely on those comps of over a year ago? Your thoughts?
We are in the same boat - a semi-resort, rural area, with houses on 5,000 sf lots to 150 acres, manufactured homes to 6,000sf sprawling "compounds." In the last year there have been 3 sales of homes, from $20,000 (manufactured home, pretty much a tear-down) to $1,525,000 (for a 300 acre ranch with senior water rights).
To get comps, the RA had to look 30, 40 miles away and she warned us that houses sell at a discount to asking price, so don't ask what you think you will actually get. She also said to expect a time on market of 6 months to 2 years.
One of my neighbors got an official appraisal in the first step to fighting their tax assessment and we relied heavily on that for setting the price for our house.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
