This mortgage market is interesting. I have been a real estate appraiser for over six years now and I have never seen a market like this. This is definitely something different and everyone should be cautions.
Particularly, those that are depending on values to appraiser like buyers, sellers, and real estate agents. These are typically the individuals that need a sale to close in order to make a commission or get a property purchased.
Date of Comparable Sales
The reason I say use caution is because increasingly lenders are requiring comparable properties to have sold within a three month time frame. This is not always feasible, but nevertheless, it is many of the lenders I encounter preference.
I work in often times on the south side of Chicago and this can be a none a very active market depending on where the subject property is situated, like many places. This causes a major problem because not many properties have sold within the three months a lender is requiring.
You factor in the fact that locating comparable properties is a complex undertaking in the first place and you quickly realize satisfying some of these lender's expectations can be unreasonable or challenging at best.
If a lender is requiring comparable properties and let's say there is only one, it is not the end of the world. In this situation, you must just be capable of explaining why the request was unreasonable and have justifiable evidence that supports your theory.
At the end of the day, compelling with many of the lenders request is the easiest way to moving the lending, purchasing, or selling situation forward. However, just know that this is not always possible and you may have to move away from lender requirements because of the marketplace you are working.
Whenever possible, consider comparable sales within a three month time frame more relevant than any other. This should keep your numbers in good order with the market, lender, and not lead your client into a fairytale that cannot be supported.