Episode 072 - Myth Debunked: Comparable Distance and Date of Sale Rules
Episode 072 - Myth Debunked: Comparable Distance and Date of Sale Rules
Myth Busters is such a good show. Their experiments to prove or disprove various tales. Today B will debunk the myth that an appraiser must comply with distance and date of sale rules when selecting comparables. Spoiler alert: there are no rules that say that.
In this episode, B talks about how the guidelines work and how you can better find comparable sales and even push back a little on appraisers when they stand hardfast on not being able to get past what they think is a “rule.”
SHOW NOTES
- 02:00 – “Rules”; Appraiser says, “I can’t…”; what they are saying is “I don’t know the rule”, or “I don’t want to…”
- 03:36 – Guidelines versus rules.
- 04:35 – Pending, listing, and expired sales. A prior sale of the subject itself.
- 06:03 – Maybe you do not need to exceed those guidelines.
- 08:07 – Start the search for comparables based upon close proximity and recent sale and then expand the area and time frame.
- 08:55 – Find properties that are comparable and similar to the similar.
- 09:22 – Proximity and recent sale has some validity but does not mean the property is more comparable.
- 10:14 – Examples about lender underwriting request.
- 11:55 – Search market area for comparables. Market area is the area a typical buyer would search for a home when making a purchasing decision.
- 13:10 – Examples of far exceeding distance and time. Geodesic Dome home.
- 15:09 – Don’t exclusively search for comparables based upon recent sale or close proximity. Find properties that are similar to the subject.
- 16:45 – Myth: comparable distance and time parameter “rules” is debunked.
SHOW LINKS
- Fannie Selling Guide on Comparable Selection – https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B4-Underwriting-Property/Chapter-B4-1-Appraisal-Requirements/Section-B4-1-3-Appraisal-Report-Assessment/1032992441/B4-1-3-08-Comparable-Sales-10-02-2018.htm
- Geodesic Dome home – https://pacificdomes.com/eco-living-domes/?gclid=EAIaIQobChMIuqil76Tv8AIVsCCtBh1OyQafEAAYASAAEgJ-j_D_BwE
- Yawkey Way Appraisals – https://www.facebook.com/YawkeyWayAppraisals
BETWEEN THE LINES LINKS
Web
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?