Question. I'm a registered appraiser in the atlanta area, i was conditioned for leaving the neighborhood to bracket a sale within six months. i had three comparable sales inside the subdivision all over six months so i decided to leave the sub to find a comp within six months is this the correct way to do an appraisal.
Were you trying to bracket size, price, or both. If the indicated values of the three comparable sales inside the subdivision were lower than the appraised value and the indicated value of the comparable sale outside the subdivision was higher than the appraised value, the your technique is lacking.
If your appraised value fell within the range of the indicated value of the three comparable sales inside the subdivsion, then your technique is ok but then I see no reason for the 4th comparable sale.
Regardless, the purpose of the 4th comparable sale needed to be well explained in simple, clear language.
There are very few places around Atlanta where I would advise using comparable sales which all sold more than 6 months ago. This market is declining for the most part, and old sales are ill advised, in my opinion.
John gives good advice, though. If your sale outside the subdivision is higher than the others I would be wary of your appraisal, too.
I am about to run in the same problem,my comps on the inside are 10-11 months old.Sales price 162-172.The subdivision next door 3weeks-6 months.Sales price179-185 and they are very compatable to the tee.John and Mag are you stating my value have to fall between162-172 or not more than the 172 not to have a problem with a reviewer.I am still registered.Thanks in advance.
If comparable sales inside the subdivision that closed 10-11 months ago sold for 162-172, then it is almost certain that your subject is worth less than $172. In view of the declining market, it may not be worth $162.
Using a sale outside the subdivision that sold for more than comparable sales inside the subdivision is an old ruse to artificially bump value.
If I were a reviewer, that would be the reddest of flags. The appraiser would have to present me with a compelling reason why the subject property value was influenced by an outside the subdivision sale more so than comparable sales within the subdivision. Off the top of my head, I can't even think of a compelling reason.
Chris, compare the sales prices from 10-11 months ago in your s/d with the sales prices from 10-11 months ago in the competing subdivision and see what it tells you.
I would guess there is a difference, but you never know. You can never provide too much supporting data for your opinion. I would include whatever I discover in the report.
