(A resale is preferable if it is verifiable and does not involve the subject
Subdivision, or PUD, it must be compared to other properties in the same market areaĪnd to properties within the subject condo project, subdivision, or PUD. If the subject property is located in a new (or recently converted) condo project, In thisĬase, the appraiser may use older comparable sales as long as he or she explains whyĪdditional Requirements for New (or Recently Converted) Condos, Subdivisions, or PUDS Is located in a rural area that has minimal sales activity, the appraiser may notīe able to locate 3 truly comparable sales that sold in the last 12 months. Subject property can be used if appropriate. When market conditions have impacted the availability of recent sales as long as theĪppraisal reflects the changing market conditions.Īdditionally, older comparable sales that are the best indicator of value for the An older sale may be more appropriate in situations Use a nine month old sale with a time adjustment rather than a one month old sale For example, it may be appropriate for the appraiser to The distanceīetween the subject property and each comparable property is to be measured usingĬomparable sales that have closed within the last 12 months should be used in theĪppraisal however, the best and most appropriate comparable sales may not alwaysīe the most recent sales. The applicable directional indicator (for example, “1.75 miles NW”). When describing the proximity of the comparable sale to the subject property, theĪppraiser must be specific with respect to the distance in terms of miles and include (For additional information, seeī4-1.3-03, Neighborhood Section of the Appraisal Report. The use of such sales is acceptableĪs long as the appraiser adequately documents his or her analysis and explains why Sales of properties that are not truly comparable may simply be the best availableĪnd the most appropriate for the appraiser’s analysis. Use properties that are not truly comparable to the subject property. Low number of sales transactions in the neighborhood, the appraiser might need to Sales, either because of the nature of the property improvements or the relatively If a property is located in an area in which there is a shortage of truly comparable Include a discussion of how a competing neighborhood is comparable to the subject The appraiser must also provide an explanationĪs to why he or she used the specific comparable sales in the appraisal report and The appraiser must indicate the comparables are from a competing neighborhood andĪddress any differences that exist. Must not expand the neighborhood boundaries just to encompass the comparables selected. Neighborhoods, as these may simply be the best comparables available and the mostĪppropriate for the appraiser’s analysis. The same positive and negative location characteristics.įannie Mae does allow for the use of comparable sales that are located in competing Of value as sales prices of comparable properties from the same location should reflect Sale activity from within the neighborhood is the best indicator Value, and provide an explanation justifying the use of the comparable(s).Ĭomparable sales from within the same neighborhood (including subdivision or project)Īs the subject property should be used when possible, and must be used in certain The appraiser must describe the differences, consider these factors in the market
That are significantly different from the subject property may be acceptable however, Participants that would also consider purchasing the subject property. To the subject property, but it should be competitive and appeal to the same market
This does not mean that the comparable must be identical These characteristics include, but are not limited to, site, room count, gross livingĪrea, style, and condition. Similar physical and legal characteristics when compared to the subject property. Fannie Mae expects the appraiser to account for allįactors that affect value when completing the analysis. The appraiser is responsible for determining which comparables are the best and mostĪppropriate for the assignment.
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