source:
  type: guide
  id: va-m26-7-ch11-t14
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 14 — Sales
    Comparison Approach
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 14 — Sales
    Comparison Approach.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch11-t14-full
  canonical_id: va-m26-7-ch11-t14-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 14 — Sales Comparison
    Approach
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 14 — Sales
      Comparison Approach
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: faa7d8c84a0580f3
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:960cb068c0b142cd1bb4a0e38f29c6c5b725d24095781b92c663a83e9fd36263
    paragraph_quote: '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 Explaining Adjustments The appraiser should
      provide comments when adjustments are made for points of comparison that are
      not self-explanatory or when large adjustments are made. Providing detailed
      commentary about the market and comparable selection may reduce the number of
      requests for revisions of appraisals. c. Limited Sales Data If the sales data
      from the market area is limited, the appraiser must provide the best information
      available and comments with the appraiser’s professional opinion about the market,
      any reasons for the lack of sales data, and the various differences between
      the subject and the comparable sales. d. Distance of Comparable Sales VA does
      not set minimum or maximum distance requirements between the subject and comparable
      sale properties. In suburban or rural communities, the market areas may be greatly
      expanded and suitable comparable sales may be many miles away from the subject.
      In such cases, the appraiser should specify why those comparable sales were
      used and how they compare with the subject. e. Sales of REO Properties The appraiser
      may use sales of Real Estate Owned (REO) properties or short sales if transactions
      of this nature are prevalent in the market. A transaction involving a foreclosure
      transfer to a mortgage servicer is not evidence of market value and must not
      be considered as a comparable sale. Continued on next page VA Pamphlet 26-7,
      Revised Chapter 11: Appraisal Report 11-21 14. Sales Comparison Approach, continued
      f. Sales From Competing Developments If the property is in a new subdivision
      or condominium, the appraiser should include, if available for comparison, properties
      constructed by a competing builder in the subject market area as well as properties
      within the subject subdivision or condominium. g. Market- derived Adjustments
      All adjustments on the market data grid should be market-derived, based on the
      amount the appraiser estimates a typical buyer would pay for the item in the
      market. Adjustments reflect contributory value in the market, which does not
      necessarily equal the cost of an 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 sales that are not more
      than 12-months old, unless explained by the appraiser. Continued on next page
      VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 11-22 14. Sales Comparison
      Approach, continued j. Time Adjustments Market condition (time) adjustments
      are made to reflect value changes in the market between the date of the contract
      for the comparable sale and the effective date of the appraisal. The appraiser
      must provide comments about current market trends to support any time adjustments.
      In an increasing market, positive market condition adjustments should be made
      if there is evidence, based on a thorough analysis of specific market trends,
      of increasing prices, a shortage of homes for sale, or decreasing marketing
      times. In a declining market, negative market condition adjustments should be
      made if there is evidence of a decline in prices, an oversupply, or extended
      marketing times. k. Condition Adjustments Since VA appraisals must be prepared
      “subject to” the completion of any repairs needed in order for the property
      to meet VA’s MPRs (see Chapter 12 of this handbook), the condition for the subject
      property compared with the comparable sales on the market data grid should reflect
      the condition with the repair items completed. VA Pamphlet 26-7, Revised Chapter
      11: Appraisal Report 11-23'
  judgment: false
