comp search
178) Gauging Market Reaction
12/09/07
Dear H2,
How do you appraise a beachfront lot/home when there is significant beach erosion in the vicinity and the State is sponsoring a beach erosion study with the possibility of a beach revitalization program in the near future?
A Morrow mmorrow@watsonrealtycorp.com
Dear Friend,
This is the reason appraisers are supposed to be familiar with the neighborhood in which the subject is located. The problem would be the same whether it be beach erosion, a new highway, the closing of a factory in the area, etc.
In these special circumstances, It is best to use comparable sales where the buyers and sellers were aware of what was happening or is possibly going to happen -- as that is evidence of how the market is reacting. Without these comparables it is very difficult to make the appraisal. You just can't guess.
H2
How do you appraise a beachfront lot/home when there is significant beach erosion in the vicinity and the State is sponsoring a beach erosion study with the possibility of a beach revitalization program in the near future?
A Morrow mmorrow@watsonrealtycorp.com
Dear Friend,
This is the reason appraisers are supposed to be familiar with the neighborhood in which the subject is located. The problem would be the same whether it be beach erosion, a new highway, the closing of a factory in the area, etc.
In these special circumstances, It is best to use comparable sales where the buyers and sellers were aware of what was happening or is possibly going to happen -- as that is evidence of how the market is reacting. Without these comparables it is very difficult to make the appraisal. You just can't guess.
H2
32) Comp Searches Per USPAP
12/31/06
Dear Henry,
Is there a way to word a comp search request so as not to violate USPAP? I’ve been told that any “value range” for a property is a violation.
Thanx,
Harry Massingill harrymassingill@comcast.net
Dear Harry,
The problem with most comparable sale search requests is that they don't really want what they are asking for. What they want is for you to do a preliminary appraisal of a subject property without producing a report. This is prohibited by USPAP.
If you received an assignment that provided you with a description of a house and its location and asked for sales that could be used in an appraisal of that specified property, I don't see why that would violate USPAP. However, if you were asked for comparable sales that would support a price, I think you would be violating the USPAP if you supplied them without making an appraisal.
H2
Is there a way to word a comp search request so as not to violate USPAP? I’ve been told that any “value range” for a property is a violation.
Thanx,
Harry Massingill harrymassingill@comcast.net
Dear Harry,
The problem with most comparable sale search requests is that they don't really want what they are asking for. What they want is for you to do a preliminary appraisal of a subject property without producing a report. This is prohibited by USPAP.
If you received an assignment that provided you with a description of a house and its location and asked for sales that could be used in an appraisal of that specified property, I don't see why that would violate USPAP. However, if you were asked for comparable sales that would support a price, I think you would be violating the USPAP if you supplied them without making an appraisal.
H2