Question:

Do appraisers consider FSBO (For Sale By Owner) properties in their comparable's?   I have a FSBO that never hit the MLS and it is going for about $20,000 less than the value.  It is a mother selling to a son situation.

Answer:

Appraiser do look at FSBO sales but rarely use them as comparable's because sales used in an  appraisal must be verified as to the conditions of the sale I.e. non arms length, short sale, real estate owned etc. and it is rare that the seller of a FISBO can be located or questioned. The one case where sales not included in the MLS are used is new construction in subdivisions that do not utilize the MLS. In this case the actual contract and HUD-1 would be reviewed from the developer's sales office and therefore are a verified sale.

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