Appraisal comps criteria and unsold comps? (California)
Is it normal for an appraiser to use a current listed property and cite a pending offer as the best comp? A year later I’m revisiting the comps, and 2 out of 6 never sold, let alone at the low prices reported.  

All of the properties used were 1/3rd our square footage, which I’m surprised to learn you can do, but then the appraiser gives an opinion on top of it, that he thinks ours is inferior, so he cut our potential value even lower. Plenty more infuriating things but using properties based on pending deals that fell apart was a shocker.  Can they do that?
The bank killed our loan based on that too.
[{"id": "ix7rws8", "text": "Usually they are only used when there are no completed-sales comparables.", "replies": [], "depth": 1}, {"id": "ix85gm0", "text": "^ and they should use an extrordinary or hypothetical condition in their assignment of condition outlining that their market research assumes that sale closes", "replies": [{"id": "ix86mne", "text": "That sounds wildly inappropriate to me.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ix88hpz", "text": "Totally normal that appraisal comps will be listings. It changing market conditions everyone hammers on appraisers but nobody knows what this stuff is worth, that is what the market is for.", "replies": [{"id": "ix9byxh", "text": "The property they used was taken off the market though, asking price and failed negotiations when hoping for overbids shouldn\u2019t be determining.", "replies": [{"id": "ixb77fy", "text": "Well it was the banks appraiser right? You didn\u2019t pay the guy?", "replies": [{"id": "ixbobei", "text": "Banks appraiser but we paid. That\u2019s standard.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ix8cua7", "text": "Listings and pending sales are not comps. Period.  Anyone saying otherwise is not a lender.", "replies": [{"id": "ix9c1cs", "text": "That\u2019s my understanding too. Thank you.", "replies": [{"id": "ix9r5jx", "text": "And I got downvoted lol", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ix8fyll", "text": "Can they do that? Sure, if it's appropriate to do so. \n\nWas it appropriate to do so? That would require an appraisal review, which can't be done via reddit. I can say that it would take a lot for me to use an offer as a primary comp, let alone as \"best\" comp, but there are so many variables that could affect that decision. \n\nThe fact that 1/3 of them didn't sell at all sounds like prices were lower than you'd like them to be.\n\nFor both questions (using offers and smaller comps), the follow-up question is: were there better comps? Were there any more recent sales? Were there any sales, pending contracts, listings, etc. that were closer in square footage? \n\nThe type of property makes a huge difference too, especially given that markets got screwed over the past few years (COVID, etc.). The data is a mess in a lot of places.", "replies": [{"id": "ix9bmot", "text": "There were definitely options closer in square footage, though still limited. Not a lot has gone to market over 6,000 square feet, so somehow they valued us at less than 4,000 sqft. properties using variables like location and other opinion based criteria.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ixcmrqs", "text": "If you can\u2019t find any other actual sales and the listing is a really solid fit then it\u2019s usually fine. \n\nJust make sure to adjust downwards as final sale prices are traditionally less than asking. \n\nSome clients don\u2019t allow it though.", "replies": [], "depth": 1}]