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Here's what comparable sales actually means in appraisal: We're talking about recently sold homes that are similar enough to your subject property that they would be competing with it if they all hit the market at the same time. The appraiser must use at least three closed sales (VA and HUD both require this minimum), selected based on how alike they are in location and physical features—not chosen because their prices happen to support a particular value. We then take those comparable sales and make adjustments to account for any differences between them and your property, so the adjusted sale prices tell us what your home is probably worth in today's market. Think of it this way: we're not guessing at value, we're using what actual similar homes sold for as our evidence.

Straight from VA Lenders Handbook (Pamphlet 26-7), HUD/FHA Single Family Handbook 4000.1, and IAAO Standards — nothing added.

Read the actual documents:

→ IAAO-Glossary 3rd-Ed final (Chief Appraiser Document Library)

→ Handbook 4000.1 - Defective Paint Section (official agency copy)

→ VA-Lender-Handbook (Chief Appraiser Document Library)

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© Copyright Notice: © Fannie Mae. UAD 3.6 / URAR reference materials shown for research and reference only. Full documents available at fanniemae.com/uad. Reproduction restricted per Fannie Mae copyright policy.

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HUD Deletes Requirement for Original Comparable Photos in FHA Appraisals

HUD eliminated the requirement for appraisers to take original photographs of comparable properties, previously mandated alongside MLS photos for FHA appraisals. This change took effect June 27, 2025.

Read full story at HUD Mortgagee Letter 2025-18 →

HUD Deletes Requirement for Original Comparable Photos in FHA Appraisals

Read full story at HUD Mortgagee Letter 2025-18 →

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#1 UAD 3.6 / URAR (FNMA) Page 219

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Sales Comparison Approach Appendix F-1: URAR Reference Guide Page 219 of 375 Version 1.3 General Information The General Information subsection always displays on the sales…

UAD 3.6 / URAR (FNMA) · Appendix F-1 URAR Reference Guide v1.3.pdf · Page 219 · View at official source (fanniemae.com/uad) →

Sales Comparison Approach Appendix F-1: URAR Reference Guide Page 219 of 375 Version 1.3 General Information The General Information subsection always displays on the sales comparison grid. Sales Comparison Approach: General Information Report Field ID Report Label When Row Displays When to Include for each Comparable Allowable Answers / Format Origin of Subject Property Information Adjustable Row Definition / Additional Guidance 22.01.16 Comparable # Always Always required 1, 2, 3 ... Sales Comparable # is only applicable to comparables No Sales Comparable #

#2 IAAO Standards Page 121

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ones. See Mann-Whitney Test. Sales Comparison Approach — One of three approaches to value, the sales comparison approach estimates a property’s value (or some other…

IAAO Standards · IAAO-Glossary_3rd-Ed_final.pdf · Page 121

ones. See Mann-Whitney Test. Sales Comparison Approach — One of three approaches to value, the sales comparison approach estimates a property’s value (or some other characteristic, such as depreciation) by reference to comparable sales. The sales comparison approach compares recently sold properties to the subject property. Adjustments are made to comparable properties to reflect the characteristics of the subject property. Sales Data — 1) Information about the nature of the transaction, the sale price, and the charac- teristics of a property as of the date of sale; and 2) The elements of information needed from each property for some purpose, such as appraising properties by the direct sales comparison approach. Sales File — A file of sales data. See Sales

#3 UAD 3.6 / URAR (FNMA) Page 279

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Sales Comparison Approach Appendix F-1: URAR Reference Guide Page 279 of 375 Version 1.3 Sales Comparison Map Sales Comparison Approach – Sales Comparison Map Report Field ID…

UAD 3.6 / URAR (FNMA) · Appendix F-1 URAR Reference Guide v1.3.pdf · Page 279 · View at official source (fanniemae.com/uad) →

Sales Comparison Approach Appendix F-1: URAR Reference Guide Page 279 of 375 Version 1.3 Sales Comparison Map Sales Comparison Approach – Sales Comparison Map Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance See iGuide Sales Comparison Map Always required Image A map showing the subject and all sales comparables must be provided. Sales Comparison Approach Exhibits The Sales Comparison Approach Exhibits subsection always displays. Sales Comparison Approach Exhibits Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance See iGuide Sales Comparison Approach Exhibits Always required Photo or image Property Photo Photos of the comparable properties display in this subsection with the Comparable #. The thumbnails

#4 Fannie Mae Selling Guide Page 106

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Fannie Mae September 2026 Page 106 of SB4-1.3-07, Sales Comparison Approach Section of the Uniform Residential Appraisal Report (06/04/2025) Introduction This topic contains…

Fannie Mae Selling Guide · Selling_Guide_Supplement_UAD_3.6_Policy.pdf · Page 106 · View at official source (selling-guide.fanniemae.com) → · Last verified: 2026-09-30

Fannie Mae September 2026 Page 106 of SB4-1.3-07, Sales Comparison Approach Section of the Uniform Residential Appraisal Report (06/04/2025) Introduction This topic contains information on reviewing the Sales Comparison Approach section of the Uniform Residential Appraisal Report, including: • Overview • Data and Verification Sources of Comparable Sales • Prior Sale and Transfer History of the Subject and Comparable Sales Overview The sales comparison approach to value is an analysis of comparable sales, contract sales, and listings of properties that are the most comparable to the subject property. The appraiser’s analysis of a property must take into consideration all factors that have an effect on value. The appraiser must analyze all closed sales, contract sales, and offerings or listings of

#5 Fannie Mae Selling Guide Page 108

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Fannie Mae September 2026 Page 108 of When describing the proximity of the comparable sale to the subject property, the appraiser must be specific with respect to the distance in…

Fannie Mae Selling Guide · Selling_Guide_Supplement_UAD_3.6_Policy.pdf · Page 108 · View at official source (selling-guide.fanniemae.com) → · Last verified: 2026-09-30

Fannie Mae September 2026 Page 108 of When describing the proximity of the comparable sale to the subject property, the appraiser must be specific with respect to the distance in terms of miles and include the applicable directional indicator (for example, “1.75 miles NW”). The distance between the subject property and each comparable property is to be measured using a straight line between the properties. Minimum Number of Comparable Sales A minimum of three closed comparables must be reported in the sales comparison approach. Additional comparable sales may be reported to support the opinion of market value provided by the appraiser. The subject property can be used as a fourth comparable sale or as supporting data if it was previously

#6 HUD/FHA Single Family Handbook 4000.1 Page 610

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at least three comparable sales; o a quantitative comparison of those property attributes to the subject; and o a comparison of the number of comparable unimproved properties sold…

HUD/FHA Single Family Handbook 4000.1 · Handbook_4000.1_-_Defective_Paint_Section.pdf · Page 610 · View at official source (HUD.gov — SFH Handbook 4000.1) → · Last verified: 2026-10-11

at least three comparable sales; o a quantitative comparison of those property attributes to the subject; and o a comparison of the number of comparable unimproved properties sold with the number of offered and listed for sale to determine supply and demand, absorption rate, and other market data required so that the report is not misleading; • certification and limiting conditions as included in the URAR, Fannie Mae Form 1004/Freddie Mac Form 70; and • any other forms and documentation necessary to comply with USPAP Standard 2. When completing the sales grid, the Appraiser must compare and appropriately adjust the sales of comparable unimproved building lots or sites for differences in location, size, zoning, utility connection or availability of utility

#7 VA Lenders Handbook (Pamphlet 26-7) Page 398

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Appraisal Report 11-20 14. Sales Comparison Approach Change Date February 22, 2019 • This Chapter has been revised in its entirety. a. Comparable Sale Selection The appraiser must…

VA Lenders Handbook (Pamphlet 26-7) · VA-Lender-Handbook.pdf · Page 398 · View at official source (VA.gov — Appraisers/Staff Appraisal Reviewer) →

Appraisal Report 11-20 14. Sales Comparison Approach Change Date February 22, 2019 • This Chapter has been revised in its entirety. a. Comparable Sale Selection The appraiser must include, at a minimum, three closed sales which the appraiser believes are the best available sales and provide comments to support the selection, when appropriate. Comparable sales should be selected based on similar locational and physical characteristics, not sales price. Recent sales in the same established subdivision, condominium or PUD are typically the best indicators of value. The sales should be similar to the subject property to the extent that the sales would be competing properties if they were on the market at the same time as the subject property. b. Comments

#8 VA Lenders Handbook (Pamphlet 26-7) Page 399

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item. h. Sales Concessions Sales concessions typically include financing incentives or non-realty items. As all adjustments must be market-derived, the adjustment should reflect…

VA Lenders Handbook (Pamphlet 26-7) · VA-Lender-Handbook.pdf · Page 399 · View at official source (VA.gov — Appraisers/Staff Appraisal Reviewer) →

item. h. Sales Concessions Sales concessions typically include financing incentives or non-realty items. As all adjustments must be market-derived, the adjustment should reflect the difference between the sales price with the sales concessions, and what the property would have sold for without the concessions under typical market conditions. The sales concessions on the comparable properties are adjusted to typical market expectations, not to the specific terms or conditions of the sale of the subject. Any concession adjustments must be downward adjustments as positive adjustments for sales concessions are not acceptable. i. Recent Sales Comparable sales should reflect the most recent activity in the market. Comparable sales are preferably sales that have taken place within the last 6 months, and generally

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