how far away can an appraiser go for comps

You can always pay for a reappraise, but I would be stunned if that has any impact on the lender. A comp is just a comparable sold property, so any site with valid sales data is fine. This article shows how. Here are 5 tips for choosing the best comps for your home: 1. Appraisals can happen for a couple reasons. She told me that comps are based on "how the crow flies" not driving distance. If an appraiser is unfamiliar with the area or the style of home being appraised, then he or she is obligated to decline the assignment. As far as Age & Condition, this is a comment I make, and go by: *Adjustment for Age & Condition, if any, is an adjustment representing the overall estimated market perceived condition, taking into account age, any updating or remodeling & overall maintained condition thereof. The appraiser or the lender will pull a list of properties sold within the last year or six months that have the same characteristics of … I've done countless reviews where the appraiser has stated the comps were 1 mile away. HI--my name is XXXXX XXXXX I can assist you. You can calculate the market value of your home in a few different ways. Appraisers and real estate agents use comps to get the most-accurate estimate possible of a home’s value. What requirements make a sale worth considering as comparable? Waterfront land appraisal differs from other land appraisal types. Then adjust for the differences. As for how far back you can go, less than 6 months is a good guideline, but there really are no "rules" for investors trying to determine the value of the property (as opposed to appraisers who … Don’t go on the defensive. Under the standard uniform evaluation protocol, FHA residential codes, the appraiser is generally supposed to use only comps which are less than six months old...but they can go back a year, as long as they provide an explanation as to WHY...recently, with the massive number of foreclosures, banks tend to use appraisers who pull older comps … Highlight the changes you’ve made to your property. A lack of comps isn’t an issue only in remote areas, he notes. A conventional loan calls for three comps, or comparative evaluations of similar properties within the same neighborhood. If you are simply trying to get a general idea of calculation methods in an area, you can … 3. An appraiser can make adjustments, but it will be a challenge for your unit to get the valuation that you might think it is worth.” 7. This is because there are usually plenty of “comps” or comparable properties that have recently sold. The comps the appraiser uses may be in an area that is not as pleasant or desirable as where your home is, which can … Now your lender can begin the application and order the appraisal. Every neighborhood and community has its own attributes, which is why it’s critical your appraiser is familiar with your particular area. However, this process is still a fuzzy one and can be highly debatable. In such scenarios, an appraiser must go back even further to find applicable data. Needless to say, the … It significantly increases the odds of an appraisal coming in low. Appraisers often go more than 5 miles away for rural properties and honestly sometimes have to go back a year to get enough comps for the appraisal. November 23, 2009 . In one Twin Cities re-fi deal, the lender sent an appraiser who was based 72 miles away, says mortgage broker Brad Ganzer. How far back in time can you go to find a sale? Real estate professionals use comps to prepare a Comparative Market Analysis (CMA) for their clients and comparables are also used in formulating Zillow’s Zestimate® home value. When an appraiser comes to your home, they will source their own comps to help accurately assess how much your home is worth. One more or fewer bedroom is ordinarily acceptable for 3+ bedroom homes. Location, location, location. Coming up with a value for the property lies at the heart of this, and that part of the appraisal process relies heavily on something you cannot control -- what others have paid for nearby houses like yours. First, the appraiser must make a judgment of whether or not they feel a credible opinion can be developed from the limited data in the first place. Usually, a buyer’s lender will require an appraisal before closing, but sometimes sellers get an appraisal to … Go green. It doesn’t make sense to compare a 2500 square foot property to a 1500 or 500 square foot property in most cases, unless the market dictates otherwise. Joan the appraiser doesn’t currently know the value of this house. Looking at house comps is a simple and reliable way to … How far away should a comparable home on an appraisal be? One may be just great except for sale to far back- or another may not have a pool, or a third may be a couple of miles away. If you suggest comps like this to an appraiser expect two things: that the appraiser will thank you, and that their trash can will be full. If an appraiser lives 50 or 100 miles away, he might not be the best fit for assigning a value to your home. ... One has a reputation of providing poor service and the other is located 50 miles away from the subject property. Value Nation: How far away can an appraiser be? Comps should be within the subdivision or as close as possible within the marketing area. The casino might be estimating that you’ll be losing an average of $40/hour and base your comps on that. How to Appraise Waterfront Land. In 2009 the appraisers are coming from miles and miles away from the subject property, which means they have very little information about the area to be appraised. They are pulling “comps” for a 1000 sq ft condo that are only 450 to 750 sq ft because the banks are demanding that the appraiser come in as LOW as possible. Greg Stephens, chief appraiser at Detroit-based Metro-West Appraisal Co., says he has encountered many situations where conventional comps are unavailable or are unsuited to the immediate situation. Waterfront land often carries a much higher value than land even a few blocks away from water. How large should the considered market area be? We just received an appraisal where the appraiser put in a home that driving distance is 23 miles from my home but in the same county. Typically, at least two comps should have same bedroom count. A few healthy, well-placed plants can go a long way toward making any space look fresh, modern, and clean. Go to www.realtor.com, click on JUST SOLD, and search by the property’s Zip Code 2. You can use comps, too. It's a two-stage step that plays a make-or-break role when it comes to the home you're under contract to purchase. But an appraiser almost always has to vary from what they wish. The VA appraisal is one of the critical pivot points in the loan process. 8. I went back to look at the comps my realtor had pulled, they were all sold at prices around $84-85 per sq ft. Two bedroom homes being appraised should have one or more two-bedroom comparables. If your appraiser used older comps, you may be able to show that the market has changed. Which seems to be the typical sales price for this size home in the area, although we have seen some sell for $90, and upwards of $100 if really nice upgrades. It can also be a problem in dense markets where sales are brisk. It sounds like they may have to go further away or further back in time to find something that compares to your property. However, there is no simple formula an appraiser can apply, and in some cases, appropriate comps for a particular home don't exist within that timeframe. But the lender, through the appraisal management company (that they probably own), is going to find the cheapest appraiser they can, who will agree to turn the report around in 2 days. In fact, with certain video poker games, the combinations of comps with the tiny house edge can result in an overall positive expected value for the player. Here’s a simple example. It's not ideal, but you have to have data. Whenever you have to go outside the community, it is far more difficult for an appraiser. The subject property is a three-bedroom, two-bath home. A very similar house sold two months ago for $275,000. Expert video poker play can also result in smaller expected losses per hour. Select comps as close to your address as possible. Appraisers go through an adjustment process to compensate for the differences in the properties. You can bring in a professional, like a home appraiser, or do it like a real estate agent would with comps (short for comparable sales). The latter does good work, has access to all market data and has time in his schedule. Generally speaking, appraisers try to use comps that sold within the prior six months. While it is possible to get an idea of what the condo is worth by examining similar properties and their sale prices, for a more accurate appraisal the owner or prospective buyer can hire a professional appraiser. Comps will allow you (or rather your agent) to go back to the buyer and say, "Another three-bedroom with about the same square footage a block away just sold last month for $190,000! If the comps are so few that an appraiser is seriously considering this sort of option, my first thought would be to call the client and have a chat. While value reconsiderations go with the territory and are allowed under the three exceptions found in the appraiser independence requirements under the Dodd-Frank Act, there are a few do’s and don’ts to keep in mind when addressing a Reconsideration of Value (ROV). Much higher value than land even a few healthy, well-placed plants can go a long way toward making space. House sold two months ago for $ 275,000 the community, it is far more difficult for an comes... The market property’s Zip Code 2 far away as Northern Virginia, because I know the neighborhoods same... Can always pay for a reappraise, but I do appraisals as far as... Time to find a sale worth considering as comparable critical your appraiser used older comps, can... In his schedule per hour application and order the appraisal this house to … how Appraise. 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