Property Q&A in 12477>Question Details

Sara, Home Buyer in 12477

Is it legal for an appraiser to compare your home to another home in a different city(ies)?

Asked by Sara, 12477 Thu Sep 17, 2009

We had an appraisal done to refinance our home. The appraiser primarily used comps from neighboring towns / cities in our area (same county though). My in-law's said it's illegal in CA to compare different cities. They said comps must come from the same town / city your house is in. Does anyone know if this is legal / illegal in NY?

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Standard practice these days is using same neighborhood, preferably within 1/2 mile from subject property, certainly same school district, same zip, same town...

If your house is 7 bedrooms and all around you are 3 bedrooms, there are adjustments they can make.

I would question their use of anything else; you have the right to do so.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Fri Sep 18, 2009
Hi Sara--I'm not sure legal/illegal but when an appraiser is working to find a value he tries to compare apples to apples ie ranch to ranch, neighborhood, size...however, the problem sometimes comes up where there is nothing or very little that has sold in the time period he has to work with (usually 3-6 mos). That is when he needs to look outside the areas. He would have to adjust for school district, size of house and amenities and give credit or take off value for differing things.

Example-- one of my properties was a 2 bedroom condo in New Paltz, we found a buyer and an appraisal was ordered. The problem was that no TWO bedroom condos had been sold for over 1 year. He had to look to nearby Highland to find comparative sales. He also did evaluate some one bedroom units and gave credit for the second bedroom.
0 votes Thank Flag Link Fri Sep 18, 2009
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