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Comp order question and Fannie Mae

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by joe lee, Jan 1, 2009.

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  1. joe lee

    joe lee Sophomore Member

    0
    Jul 18, 2006
    Professional Status:
    Licensed Appraiser
    State:
    Indiana
    Anyone know if Fannie Mae has any requirement as to the order of comparable sales on a sales grid? I have a client who is telling me to rearrange the six comps from the most recent sale to the oldest and saying it is a FNMA requirement. I think he is nuts but want to make sure as I contend the order makes not a bit of difference as long as FNMA requirements are followed.

    Thanks for your help...
     
  2. PropertyEconomics

    PropertyEconomics Elite Member

    1
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico

    Fannie has no such requirement.

    The order of comparables are left to the discretion of the appraiser, however, Comps 1 - 3 should be the best sales you have available with supporting sales occuring in the slots of 4 - 9.
     
  3. Randolph Kinney

    Randolph Kinney Elite Member
    Gold Supporting Member

    111
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I agree with PE, that is not a requirement by the form or Fannie Mae / Freddie Mac. And you generally would order your comps with the best, most similar to the subject as number 1.

    However, it may be useful to your client where he may see a trend relative to price with the time sequence ordered from newest to oldest. Of course, if he can't read the data you put in your addendum discussing neighborhood trends on price, supply / demand, and marketing times, the fall back would be to assemble your comps in a time sequence.
     
  4. Doug Wegener

    Doug Wegener Senior Member

    17
    Apr 14, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    You should educate him that it is not, but do it anyway. Its the sort of request which doesn't compromise your integrity.
     
  5. Mike Kennedy

    Mike Kennedy Elite Member

    196
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    http://www.allregs.com/efnma/index....fnma/selling/part-xi/xi-ch-4/xi-406/xi-406.02

    There is no such Fannie "comp order" requirement. There MAY be a Client specific requirement (either ongoing or stated on each order) which you may have agreed to. A explanatory comment re presentation of comparables utilized is a wise practice. Perfectly acceptable to arrange by proximity, similarity, style, gla, closed, contracted, active status, OR Date as long as a minimum of 3 closed sales are included in the analysis. Explain what you do - and why.

    See sequential REVIEW order: http://www.allregs.com/efnma/index....fnma/selling/part-xi/xi-ch-4/xi-406/xi-406.05
     
    Last edited: Jan 1, 2009
  6. Proactive

    Proactive Senior Member

    50
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington

    I like Doug's answer best...:coolsmiley:
     
  7. CANative

    CANative Elite Member

    265
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Ask him to provide a selling guide reference of annoucement letter #.

    Otherwise, if they can't live without the change I'd charge them for an hour of my time. You not only have to rearrange the order, you have to make a new map and rearrange the narrative comments.
     
  8. Tom Woolford

    Tom Woolford Elite Member

    52
    Nov 20, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    This is probably one of those things where good client relations is more important than being right. I'd make the change, note the report and file and move on. 5 min of work, a happy client, and more work down stream. It's counterproductive to stand your ground on this issue.
     
  9. Mister Ed

    Mister Ed Senior Member

    0
    Jan 24, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Georgia
    As much as I completely hate stupid client stips like this one, I am with Tom & Doug on this one.

    This is not a bridge worth dying on or for...

    1) depending on your software, the maps take about 1-3 minutes of your time.
    2) rearranging the comps is a breeze, and if your software doesn't move the pics properly with them, you need new software (1-2 minutes at most).
    3) comments which may need to be altered should take no more than about 5 minutes.

    In the last week, I have received calls on every report that I have turned in... all of the stips have been of this nature... It just tells me that the person reviewing the report is trying to prove that they are needed by their employer.

    Here was my craziest stip (two different FHA reports--cost approach not developed--for the same lender and reviewed by the same reviewer).

    Sent in the first report... my software automatically transferred the land value to the Cost Approach line in the reconciliation section on the URAR... It was requested that I remove it because that is the land value and not the cost value. Time to "correct" and return: less than 5 minutes...

    Sent in the next report the next day and made sure to not have the site value in the Cost Approach line of the reconciliation section. Response from same reviewer: put the land value in the cost approach line of the URAR so the underwriter can quickly compare the site to value ratio. Time to "correct" and return: less than 5 minutes...

    Two identical types of reports for the same lender, reviewed by the same person... wanted identical information reported two different ways! I could have called and asked how far his head was placed somewhere, but this client sends me quite a flow of work, did not ask me to discount my rates since volume has dropped, and pays me (my price) within 10 calendar days of report delivery, doesn't hassle me with status calls, etc.

    It is just like the order of the comps on the grid... NOT a hill worth dying on (in my opinion).
     
  10. dobie

    dobie Senior Member

    5
    Oct 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New Jersey
    If it's a regular client who is otherwise reasonable and fair I would never charge for this type of change. I would try and educate them andf point out that it's not a FNMA requirement but I would just make the changes. Rearranging in alaMode (and most other software packages) takes about 15 seconds maybe 30. Same with a map.

    Nickel and diming a regular client is just foolish.
     
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