When it comes to appraising a property, the appraiser must look for comparable properties to establish a fair market value. These comparable properties are also known as comps. So, how far back do appraisers look for comps? Appraisers are primarily required to look only at sales that occurred within the past 90 days. However, if there isn’t enough data, a lender could allow appraisers to look back six to twelve months. Here are some formatted bullet points to help you understand the concept better:
Appraisers are required to look for comparable properties, also known as comps, to establish a fair market value.
The appraiser’s primary data source for finding these comps are sales that occurred within the past 90 days.
If there aren’t enough sales data to establish a fair market value, a lender could allow the appraiser to look back at sales that occurred six to twelve months ago.
However, it’s important to note that the appraiser’s main focus is always to establish a fair and accurate market value for the property in question.
In short, appraisers are primarily required to look at sales that occurred within the past 90 days to find comparable properties or comps. If there isn’t enough sales data, appraisers could look back six to twelve months with the lender’s approval. Real Estate is always changing and fluctuating, so it’s best to trust an experienced appraiser to deliver an accurate appraisal based on market trends and data available.