Sales Listings and Contract Offers

In every case, the appraiser must

·   analyze sales listings, contract offers and unsettled sales to determine if market conditions changed between the date each comparable sold and the date of the subject property appraisal

·   This is especially important in markets with rapidly increasing or decreasing values.  If the subject property is in a new subdivision, the analysis must include the builder’s closed sales, sales in competitive subdivisions and sales of similar existing properties.

·   certify, either in the “Neighborhood” section of the URAR or on an addendum, “I have considered relevant competitive listings/contract offerings in performing this appraisal, and any trend indicated by that data is supported by the listing/offering information included in this report.”

·   provide [ ]a listings/offers addendum if a significant market transition is indicated in the “Neighborhood” section (due to changes in employment opportunity, housing supply/demand, average marketing time, seller concessions, etc.).

If an addendum is required:

·   It must provide all of the following information regarding at least three competitive listings or verifiable, bona fide contract offerings considered the most similar and proximate to the subject:

-   The type of information usually found in an MLS entry or other listing.

-   How long each property has been on the market (total time listed).

-   Any change in the listing price of each property (if known).

-   A short statement comparing the property to the subject.

·   Contract offerings are more desirable than listings.

·   Any new construction contract must clearly identify every optional item and variation from the basic house type and any sales/financing concession included in the sales price.