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AIV & ARV Comp Sets - Desktop 360

Guidance for handling the “as-is” and “as-repaired” (ARV) comp sets for Desktop 360 valuations

These orders are part of our investment lending product, and they do have some nuances compared to standard GSE origination work. Let me provide some guidance for handling the “as-is” and “as-repaired” (ARV) comp sets:

1. Locating “As-Is” Comps (C5/C6 condition)
We understand that it is often very difficult to find sales in C4 to C6 condition. Our preference is for you to expand your search in both time and geography to try and identify 3 sales that represent the subject’s condition, even if you need to go back 48–60 months. The goal is to capture how the market has historically reacted to below-average condition. If you do go back that far in time just know that you likely won't use comps that old in the grid, but data from that long ago could augment any recent sales you do find by calculating the percentage spread between below average and updated condition levels back then. 

If 3 true “as-is” comps cannot be located, it is acceptable to use 1 or 2 sales that best reflect the subject’s current condition. In those cases, please explain in your reconciliation commentary why you were unable to provide 3 such sales. The key is demonstrating that you have searched the market for at least one or two strong market indicators to anchor the as-is value.

2. Bracketing Requirements
We don’t require bracketing to the same degree that GSE work does. However, a few points are important:

  • GLA (gross living area) must be bracketed in all reports.

  • Lot size and age should also be bracketed where possible, or at minimum reflected by similar comps.

  • If you can’t achieve bracketing with 3 comps, it’s acceptable to add a 4th or 5th ARV comp to cover these elements. Just be sure to explain your rationale.

3. Reconciling the Spread
The critical part of these assignments is demonstrating how the market responds to below-average condition compared to typical condition. Even if you can only locate one older or out-of-area comp, that still provides an anchor point for the as-is/ARV spread, which is what the client needs to see supported.

We recognize these reports are more challenging, but the goal isn’t perfection—it’s showing a reasonable, market-supported measurement of condition-based reaction in value.