Appraisers No Longer Using HUD-1 Settlement Statements?

We recently had an appraisal done on an existing home in a subdivision that still has new homes being constructed. When speaking to the appraiser, I mentioned that the builder had a recent sale of exactly the same model of home in the same subdivision that was not on the MLS. In the past, appraisers were often able to use HUD-1 Settlement Statements in their appraisals. However, according to this appraiser, they are no longer allowed to use HUD-1 Settlement Statements.

Now, in most places, this might not be an issue. But Utah is a non-disclosure state, which means comparable sales used by appraisers are either in the MLS, or the appraiser might be able to request HUD-1 Settlement Statements if a builder is not using the MLS. In some areas, there are many small builders (and some bigger ones) who do not use the MLS. I think this could become a real issue for appraisers trying to find recent sales in order to calculate a homes value.

Has anyone else heard this and what do you think?

One thought on “Appraisers No Longer Using HUD-1 Settlement Statements?

Leave a Reply

Your email address will not be published. Required fields are marked *

Please enter to stop spam *