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For reference plese see the neighborhood analysis section of the URAR

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by xm72mhd, Aug 4, 2007.

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  1. xm72mhd

    xm72mhd Elite Member

    0
    Aug 13, 2005
    Professional Status:
    General Public
    State:
    Florida
    % built up

    Fannie says "built up means sites available and improved.

    I think:
    In a mature neighborhood where some sites are vacant and some have "scrapers" and some are habitable, those sites that are improved with scrapers and available for redevelopment should rightfully be included in the not built up %.

    Fannie wants to know HI/Lo/Mode for prices of SFR. Eliminate extremes.

    I think:

    The range should only include those transations that are intended for relatively quick single family occupancy. Those transaction that are intended as hold for development or extensive rehab are not reflective of the SFR market.
     
  2. Mike Kennedy

    Mike Kennedy Elite Member

    94
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Fannie doesn't care about reality nor common sense........"She" wants THE NUMBER $$$$. The Hi - Lo range is there as a $$ directional sign to Appraisers.
     
  3. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    315
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Fannie wants to know HI/Lo/Mode for prices of SFR. Eliminate extremes.

    Recent review...a CR reviewer but very high number. Diss'd the appraiser who said area sales were mainly $60K to $250 in neighborhood. Reviewer said $750,000 was high....an extreme sale, one of 2 over $600,000 in 2 years- and was well outside the city limits (the appraisers defined market). Nothing between $600k and 350k, not even a poultry farm, and within the city limits nothing exceeded $250...exactly what the original appraiser said.
     
  4. Joker

    Joker Elite Member

    0
    May 28, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Ohio
    So....
    In a rural area where the landowners are farmers holding property family owned for generations, there may not be a house in sight but it should be 100% built up because there is no land "available"??
     
  5. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    315
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    You are pointing out one flaw in that 'built up' methodology. Rural areas don't play well with others. I think you could defend determining the vacant tracts in a section as "built up" but like you point out, that might mean 100% build up or even 30% or 0%. Its pointless in a rural setting & its also predominately ignored by UWs as best I can tell.
     
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