The Appraisal Practices Board (APB) and the Appraisal Foundation sent a reminder out about the extended deadline for comment on the second exposure drafts for Identifying Comparable Properties. The deadline is July 31.
The two second exposure drafts in question are Identifying Comparable Properties and Identifying Comparable Properties in Automated Valuation Models for Mass Appraisal.
As part of its ongoing responsibilities, the APB is tasked with identifying where appraisers and appraisal users believe additional guidance is required. One such issue identified by the APB is identifying comparable properties. Comparability analysis is a fundamental study in determining property value. This analysis involves a side-by-side examination of physical and transaction characteristics of the identified comparable properties relative to the subject. The reliability of this valuation technique relies heavily on the proper selection of suitable comparable properties.
The Identifying Comparable Properties guidance discusses the terms and definitions associated with a comparable property, the characteristics generally considered for determining comparability; and the degree of suitability of a property as a comparable. The guidance addresses whether there is a threshold of differences, which based on their magnitude, automatically disqualifies a property as comparable.
Lastly, the guidance examines a closely related topic; the differences between the terms, “market area” and “neighborhood” and a broad summary of the characteristics to consider for delineating a market area.
Click here to view the entire draft for comment.
The APB discovered in developing guidance on Identifying Comparable Properties that separate guidance on Identifying Comparable Properties in Automated Valuation Models for Mass Appraisal was required.
This guidance discusses the terms and definitions associated with a comparable property, the characteristics generally considered for determining comparability; and the degree of suitability of a property as a comparable when using automated valuation and mass appraisal models.
Click here to view the AVM for Mass Appraisal draft for comment.
Comment deadline, again, is July 31. Written comments on this exposure draft can be submitted by mail, email and fax.
Mail: Appraisal Practices Board
The Appraisal Foundation
1155 15th Street, NW, Suite 1111
Washington, DC 20005
Email: [email protected]
Fax: (202) 347-7727