Fannie Mae Requirements for comparable sales for new (or recently converted) projects
Fannie Mae requirements have been revised in December 2021 for comparable sales when the subject property is one of the first sales in a new or recently converted condo project, subdivision, or PUD containing 2 to 20 properties. Fannie Mae now will allow the appraiser to use comparable sales from outside the project that meet the following:
▪ the comparable sales must be from a similar type of project, subdivision, or PUD; and
▪ the comparable project, subdivision, or PUD must be another development that has similar units, amenities, and is a similar size to the subject.
If the subject is not the first unit under contract in the project, the appraiser must also include one “under contract” sale from the subject’s project for comparison. This change will provide additional flexibility to lenders and appraisers in demonstrating market value and enable more appraisals to be eligible.