The Appraisal Foundation’s Appraisal Practices Board is seeking public comment on a proposal about how to adjust comparable sales for seller concessions when making valuations.
“A common tool used to help facilitate a property transaction is to have the seller provide financial assistance or incentives to the buyer,” the board’s proposal states. “Such assistance may be considered a seller concession or financing concession and this is important because it may have an influence on the contract price. The purpose of this guidance is how to identify, verify, analyze and adjust sale comparables for both seller and financing concessions.”
You can view the appraisal board’s second draft at the Appraisal Foundation Web site, and submit public comment on the draft proposal through Feb. 29.
We believe financial assistance or incentives often help families buy a home. Appraisers can reflect and adjust for concessions in their analysis. This has been our experience here in the “Sierra Foothills” region of Placerville, El Dorado County, California. What comments or recommendations could you offer?
Source: REALTOR® Magazine Daily News