Quick Answer: How Recent Should Comps Be?

Do appraisers look at comps?

To determine the current market value of a property, agents and appraisers analyze recent comparable sales in the area.

But simply choosing which sales to include, or even defining the area, can be subjects of debate..

How are comps calculated?

Comps are typically determined by comparing the property in question to other properties within a 1-mile radius, which have sold within the last year and have similar attributes (such as the same number of bedrooms, age, subdivision, square footage, etc).

What do assessors look for?

An appraiser will evaluate and comment on: The materials and conditions of the foundation and exterior walls, the roof surface, screens, gutters and downspouts. The materials and conditions of the floors, walls, and trim.

How do you know if comps are accurate?

How to gauge the accuracy of your compsCompare your estimated price with your home’s estimated price at an online home value estimator, like Zillow or Redfin. … Ask a real estate agent for a free pricing estimate.An appraiser’s opinion is the most accurate method.Jan 5, 2018

Why do appraisers lowball?

Another reason some appraisers low-ball is to avoid claims against their errors and omissions insurance policies-for unsubstantiated value. When borrowers default or when Fannie or Freddie requires a lender to buy a loan back because of a defect in the loan file, lenders may look to blame others to recoup their losses.

How do you find comparable home values?

How to assemble the best compsSearch recently sold listings. Start by searching real-estate listing sites, such as Zillow and Redfin, for the handful of recently sold listings that are most like your home. … Apply these standards. The sold listings that are best for comps are: … Visit your comps. … Calculate your home’s value.Jan 5, 2018

What happens if appraiser Cannot find comps?

A lack of comps is no excuse for not doing an accurate appraisal, Wagar says. Even in states with no MLS and no disclosure, or even if the property is a geodesic dome rather than a conventional house, any property can be appraised. If you can’t find sufficient comps, the cost approach will usually work.

How much do comps affect appraisals?

Usually, you will see appraisal adjustments of $20 to $40 per square foot for above-grade square footage and less for basements. The higher range is usually for a more expensive house with higher build quality. Based on the real estate comps, the subject property is worth $182,500.

Do corner lots appraise higher?

Corner lots are less desirable, and when comparing houses for value we value a bit less for being on the corner. The exception to this is if the neighborhood is zoned for businesses, from a business standpoint a corner lot is more desirable as it gets more traffic, higher visibility, and more parking..

How close should Comps be?

one mileComps should ideally be within one mile of the subject property, and not over any major barriers like a freeway, a river or railroad tracks. Comps need to be in the same city as the subject property in most cases, even if a comp in another city is less than a block from the subject property.

How many months comps does an appraiser use?

six monthsIdeally, an appraiser will use comparable sales that are as current as possible since more recent sales will better reflect an ever-changing real estate market than older ones. Generally speaking, appraisers try to use comps that sold within the prior six months.

How do I find comps?

There are several additional resources for finding comps:Public property records: If you want to find the sale price of a specific comparable, the county usually keeps those records. … Zillow: Search on Zillow using the Recently Sold filter. … Zillow pricing tool: Try this pricing tool to find comps in your area.

Does a messy house affect an appraisal?

“Generally speaking, a messy house with scattered clothes, toys or belongings does not affect an appraisal. Appraisers are professionals that have been trained to look past the clutter and assess the true value of the property,” explains Albert Lee, Founder of Home Living Lab.

Do appraisers use active listings?

In short, it is a myth in real estate to believe appraisers cannot use current listings in a valuation. That’s simply not true.

What criteria do appraisers use?

A qualified appraiser creates a report based on a visual inspection, using recent sales of similar properties, current market trends, and aspects of the home (e.g., amenities, floor plan, square footage) to determine the property’s appraisal value.

How recent do comps have to be for appraisal?

When an appraiser is looking for comparable properties to determine a price, they are supposed to only look at sales within the last 90 days. Now, if there aren’t enough sales a lender might go back six to 12 months. But the ideal is 90 days.

How many comps do you need for an appraisal?

3Bare Minimum: Appraisers must use at least 3 closed sales as comps. One Year: Comps need to have sold within the past 12 months, though an appraiser can make an exception if there is a good reason to use older sales (custom home, no truly recent competitive sales, etc…).

What hurts a home appraisal?

Factors that might or might not matter: Location and layout Certain elements about your property that would be impossible or difficult to change, such as its lot positioning, proximity to a big retailer, or overall layout, may impact its appraised value or homebuyers’ perception of it.