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Free Comp Check
If you would like a free comp check for a property located in the areas we service we can do that. However, there are very specific rules governing the use of comp checks. In order to be USPAP compliant, I use an Automated Valuation Model or search sales with parameters specified by you. This may be useful for your in-house business related decisions. No ethical appraiser can guarantee a pre-determined value without doing an appraisal. If you would like a comp check, send us an e-mail or fax a request (866-410-9234). You may also wish to read the read the relevant section of USPAP regarding AVM’s USPAP ADVISORY OPINION REGARDING AVM.
If you prefer you may also specify a comp check using specific parameters. Many people request all sales within 1 mile in the last 6 months within 15% of the subject square footage,or whatever other parameters you choose. Comp checks are sales data using these parameters specified by you. They are not a guarantee of a pre-determined value. .
There is an incredible amount of confusion regarding comp checks. Some appraisers think they are "illegal". They are not. Here is the advice from Advisory Opinion-19 of USPAP (USPAP are the rules governing all appraisers in the United States) :
Illustrations (AO-19)
Some of the requests shown in the Background section of this Advisory Opinion share common characteristics. Possible responses to each common group of requests could be:
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We need comps for (a specific property) that will support a loan of __xyz amount_________; can you provide them?
“Maybe, but I’ll need to research the market to know whether the ‘comps’ will support a value range relative to the loan amount. In doing this, I will be deciding which sales are ‘comps’ and what those ‘comps’ mean. Those decisions will result in a range of value for your prospective borrower’s property, which is an appraisal.
You also need to recognize that there are risks in this kind of assignment. You should realize that my value conclusion could change if I subsequently perform an appraisal. Under the research and analysis limitations you suggest, I would not have verified some of the data and would have to use extraordinary assumptions about the market data and your borrower’s property information. I would not have performed some of the analyses steps I might complete in an appraisal assignment without those limitations. If all of that is agreeable to you, we can proceed.”
Here is a link to AO-19. AO-19
Anyone who requests a comp check from me is agreeing to the conditions as described in AO-19. Most importantly they should realize the value conclusion can change if I subsequently perform a full appraisal.
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