I have a subject in poor condition in a large subdivision. The comps are few. One comp I found through MLS sold in 11/06 was in similar condition, however when checking the county records it resold in 3/07 (No MLS). Is there any way to use the 11/06 sale, with full discloure of course. I have never done this, however it is my best comp.
I have done the same thing you are wanting to do and can't think of any reason why it is not acceptable.
I used it, in my case, because of the condition as well.
If it, the comp, resold later after it was repaired I am not aware of any reason to discuss it in your appraisal. You are using the comp as of 11/06. If it sold in the same condition later that is a different story.
If the effective date of appraisal is subsequent to the latest sale, no, you cannot reconcile exclusion of the currect sale in favor of an older sale, assuming of course, both are arms length.
I used current sale with large line item adjusment. Not as clean as I now have 34% gross adjustments. Either way the bottom line comes out the same so I went for using current sale and large line item adjustment. - Thanks
Can anyone think of an ethical or legal circumstance under which the most recent interceding arms length sale of a property whose physical properties have not changed would be omitted from a current valuation?
This is a case where the most recent sale must be verified with a participant in the transaction. Do you know it has be rehabbed? To what degree? Is your single item adjustment simply the difference between the two sales?
Verfication is just as important as full disclosure. Once verified, there is no reason you cannot use either sale with disclosure.
Pappy,
Nobody stated that the conditions had not changed. The first two responses were based on if the conditions had in fact changed (post rehab), then you posted that you can't do it. Then, I said cite your source, You couldn't. To summarize for those reading this thread, most agree that it is in fact acceptable if the condition have changed and unacceptable if conditions have not changed, to use a previous sale of a comparable property assuming the prior condition most reflects the condition of the subject.
jr: if you'll notice the time stamp on all three posts were the same. I was replying to the original post, which was all that existed at the time, and in the absence of any statement the home had been rehabed made my comment.
I assume it must be important for you to point this out for some reason.
Sorry the house had been rehabed - obviously rehabed( new front door, new windows, new garage door, exterior paint) however no MLS to back up exactly what had been done, that is why I thought the original sale was the better sale to use.
