Selection of Comparables

Comparables must be the best available in the subject’s market area, considering typical transactions and actions of typical buyers and sellers. 

Comparables must not be restricted solely to those in a similar “as is” condition.  A property in the immediate area but in a better condition than the subject may, with proper adjustments to the sales price, be a better indicator of value than a comparable in a similar condition but in a different area.

Repairs

The appraiser must provide a list of all repairs which are

·   needed to make the property meet VA Minimum Property Requirements, and

·   Reference:  See Chapter 12.

·   cosmetic but affect the marketability of the property.

The repair list must show

·   the estimated cost of each repair, and

·   any contributory value of each repair.  In estimating contributory value, the fee appraiser must recognize that cost does not always equal value.  In some cases, the real estate market only recognizes several individual repair items considered in the aggregate as contributing to value.

Liquidation Addendum

Every liquidation appraisal must include an addendum.

References:  See

·   Section 11.08, and

·   Figure 1, Liquidation Appraisal Addendum Example.