Comparable Selection

When you provide appraisers comparables, make sure that is what they are. If the subject house is 3 bedroom 2 bath, 1,600 sf in Lakewood Please don’t hand the appraiser a home that is 4+ bedrooms over 1,900 sf and over a mile away in Long Beach, and over 6 months old.

Current underwriting has changed for loans. Lenders want to see a minimum of 3 sold comps within the last 90 days. As well as 2 Active or Pending sales.

I typically try to stay as close to the subject as possible for starters. If the house is 3/1, I will focus one finding other 3/1’s first, then expand t 2/1’s and 4/2’s. I want to bracket the square footage. If the subject is 1,600 sf, I want comps that are less and more then 1,600 sf. Remember, we are trying to find the best match to the subject if possible.

Also, tell the appraiser was comps you used in determining the list price. The more information you can provide to the appraiser the better.

Sometimes, the best thing you can do when you think it might not appraise for the price your sellers wants to list is for, call me. I can help, by providing an objective opinion from a third party. I can do this for a small fee.

If you have any Apprasial Needs in Long Beach/Lakewood or surrounding areas, call me at 562-673-1138 or go to my website www.wallaceRES.com

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January 31, 2011   No Comments