Appraisal Myths & Methodology Part II
By: Donald A. Rousseau, President

1. Myth: Pending Sales CANNOT be used as comparable sales.
   
   Reality/Fact: FNMA requires that 3 comparable sales be utilized, each which has been settled or closed. In addition, the appraiser may submit pending sales and/or active listings to support their value opinion as 4th, 5th or 6th comparables. Also, land contract purchased data may be utilized as appraisal supporting data.
   
   Methodology: In today’s market, which in most areas of the country is experiencing longer marketing times and softening market values, it may be imperative to use pending sales and current listings to accurately reflect the subjects market value.
   
   
2. Myth: Appraisers CANNOT use comparables that are over 12 months old.
   
   Reality/Fact: FNMA suggests that sales that are utilized be closed or settled within the last 12 months but does not require this. They do require the appraiser to comment on why sales over 6 months were utilized.
   
   Methodology: Often times in rural areas or exclusive small pocket areas sales of truly comparable homes that sold within the last 12 months may not be available. Therefore, comparables from over 12 months old from the subjects immediate marketing area may be your best indication of value: the appraiser will need to explain in detail the reason he/she included the sale. Also, it may be imperative in a condominium project to utilize the most recent sale or last sale from that project, which may be a sale of over a year.
   
   

If you have any questions please contact us at marketing@metrowestappr.com

Mortgage applications surge

Gain of 5.9% is first in three weeks, according to bankers' group.

NEW YORK (Reuters) -- U.S. mortgage applications rose for the first time in three weeks as interest rates fell from a four-year high, an industry trade group said Thursday.

More Info Here

Next hot market...think Washington

Above average job and population growth are driving strong home-price gains.

By Les Christie, CNNMoney.com

NEW YORK (CNNMoney.com) - As forecasts for housing price growth have cooled for most of the country, they are calling for booming values in the state of Washington.

More Info Here

Joke of the Month:

Funny Bumper Stickers

“Give me coffee and no one gets hurt!”
“Don’t wash this vehicle – Undergoing scientific dirt test”
“Cover me. I’m Changing lanes”
“He who laughs last, think slowest”

Sudoku Puzzle:

Click here for Rules/Instructions

Click for answers to puzzle

Fun Fact:

"What are the highest and lowest recorded temperatures on Earth?"

Answer: "The highest temperature in the world was recorded as 136F (58C) at Al Aziziyah (el-Azizia), Libya, on September 13, 1922; The highest temperature recorded in the United States was 134F (56.7C) in Death Valley, California, on July 10, 1013. The temperatures of 140F (60C) at Delta, Mexico, in August, 1953 and 136.4F (58C) at San Luis, Mexico, on August 11, 1933 are not internationally accepted. The lowest temperature was -128.6F (-89.6C) at Vostok Station in Antarctica on July 21, 1983. The record cold temperature for an inhabited area was -90.4F (-68C) at Oymakon, Siberia (population 4,000), on February 6, 1933. This temperature tied with the readings at Verkhoyansk, Siberia, on January 3, 1885, February 5 and 7, 1892. The lowest temperature reading in the United States was -79.8F (-62.1C) on January 23, 1971, in Prospect Creek, Alaska; for the contiguous 48 states, the coldest temperature
was -69.7F (-56.5C) at Rogers Pass, Montana, on January 20, 1954."

"From The Handy Science Answer Book"

Riddles & Brainteasers:

"I travel all around the world but never leave the corner. What am I?"

Click here for the answer

Recipe of the Month:

Almond-Crusted Chicken with Scallion Rice

From www.cookinglight.com

Click here for the recipe

If you would like to submit your favorite recipe or if you are looking for something particular please email us at marketing@metrowestappr.com

I arrived at my appointment, out in the middle of the no where. I greeted the homeowner and began visually inspecting the property. I went to get my tape measurer to measure the exterior of the house. Before going through the gate to the back yard I asked the homeowner if he had any dogs, and he replied, no. I continued the exterior inspection when I encountered the most unlikely creature. I guess I should have asked the homeowner if he had any pets at all. As I opened the gate I came face-to-face with homeowners pet pig. It was cute, but looked like it was ready to eat me for lunch!

Please email us at marketing@metrowestappr.com

Your questions and our reply will appear in next months issue.

We have provided a quick, 3-question survey to be completed.

Your feedback is important to us to know how to better serve you.

Click here for survey

Please email us at marketing@metrowestappr.com

Your questions and our reply will appear in next months issue.

Visit us today at: www.metrowestappr.com

Visit our sister company World Appraisal at: www.worldappraisal.com

Metro-West & World Appraisal
We invite you to stop by and meet our staff!

Please come by our office, meet the employees and see how our operation works!
Metro-West & World Appraisal
27555 Executive Drive
Suite 180 & 185
Farmington Hills, MI 48331
For information or questions please email us at: marketing@metrowestappr.com

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"Always bear in mind that your own resolution to succeed is more important than any other one thing."

~ Abraham Lincoln ~

To ensure that our appraisers are going above and beyond to service the homeowners, we have created a survey for the homeowners to either fill out online or call us to complete the survey. By completing the quick survey the homeowners name will be entered into a monthly drawing for a $100.00 dinner gift certificate to the restaurant of their choice.

Here at Metro-West & World Appraisal we are consistently striving for excellence to ensure that we are servicing our clients to our fullest capabilities. If you have any questions call us directly at 888-676-9237 and ask for either Lisa Rahaim or Cristy Thomas.