Comps are comps. . . or are they?????

Real Estate Appraiser with Sulamo Appraisal Service

It seems the rules on comparables are different depending on the type of report being done, or so I am hearing.  That explains alot of the confusion.

For appraisals - most lenders require at least 2 of the closed sales to have closed within the past 90 days. In addition to the 3 closed sales there is now a requirement for 2 pendings or listings be in the report and adjusted as warranted by the market. 

Yes guidelines do vary by lender.  How?  We have a multi layered system of guidelines.  It starts with the federal rules, then state, then each individual lender.  Each layer can be more strict or add additional requirements but they cannot relieve the requirements set by the layer above them.  Therefore the state can add to the federal rules and the individual lender can add to the state and federal.

I am hearing that for BPO's agents can use sales up to 18 months old? At least that is what I have heard from local agents in this area.  It is understandable why there would be confusion.

I often have realtors give me comps they have run which are 6months+ old and it can be interesting to get them to accept that our guidelines have changed so much as it was only a year ago that we could use sales up to 6 months old and in years before that we could go back 1 year (and more with proper explainations)

So our world has changed . . . . and it will again.

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