Posted by Bill Jacobsen on March 28, 2007 at 24:40:51:
An appraiser would like to find houses as close as possible to the subject property. If the property is somewhat unique or there has been few sales, they have to look at a greater distance. There really is no limit but appraiser may refuse to render an opinion if there is no data.
The appraiser is looking for properties that are similiar in size, age, type, and condition. They will make dollar adjustments upward or downward to account for differences.
exact ‘legalize’ of comperable properties? - Posted by Julie Herron
Posted by Julie Herron on March 24, 2007 at 18:45:32:
Looking for definition of what constitutes as comparable properties used in financing home - how far is the bank allowed to go (distance wise)? What determines ‘neighborhood’ as far as the bank is concerned?
Re: exact ‘legalize’ of comperable properties? - Posted by River City
Posted by River City on March 28, 2007 at 09:20:09:
Generally, if an appraiser goes more than 2 miles from the property they must include an explanation as to why they had to go beyond the two miles. Rural areas usually require appraisers to go more than two miles for comparable properties.
If the subject property is in a subdivision, appraisers try to find two of the three comparable properties within the same subdivision because these properties best show values in the immediate area of the subject property.