Ask The Appraiser

What if I want my appraisal to only include comparable homes sold in the last 3 months in my neighborhood?

Got a call today with the following question:

“I am selling my house to my father and he wants to get an appraisal first. It is an all cash deal and no banks are involved. My father wants an appraisal that includes homes in the immediate neighborhood and not more than 3 months old. Is this something an appraiser can do?”

Answer:

If the home you need appraised has 3 or more homes that are model matches to your home and sold in the past 30-90 days - not only would they be included, it would likely be the least complicated appraisal I have completed in years!

However, most scenarios don’t have this easy of an appraisal.

In completing the sales approach in an appraisal, the appraiser MUST analyze comparable data that is available to indicate a credible value conclusion. Therefore - if there are similar sales in the neighborhood that are similar to the subject the appraiser would include these in the appraisal and the more recent the better.

However, there are times where truly similar comparable’s are not available and this is when it is extremely important to have a qualified appraiser that:

1. Knows your area.
It may be necessary to utilize sales from a competing neighborhood and the appraiser is responsible for knowing which neighborhoods are competing and have similar values.

2. Knows how to determine accurate adjustments for the differences that exist.
All adjustments for site size, living area, pools etc. are not the same for all homes and neighborhoods.

3. Knows how to support the adjustments that are needed.

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