1. Welcome to AppraisersForum.com, the premiere online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Predominant age and value?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Tim Hicks (Texas), Aug 14, 2007.

Thread Status:
Not open for further replies.
  1. Tim Hicks (Texas)

    Tim Hicks (Texas) Elite Member
    Gold Supporting Member

    72
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    I review appraisals all the time. It amazes me how often the predominant age is exactly the age of the subject and the predominant value is always the value of the subject property. It doesn't matter if it is the smallest home in the subdivision or the largest, it is the predominant value.

    Does anybody read Fannie Mae guidelines? The forms were developed by Fannie Mae.

    In 16+ years, I rarely find any neighborhood where I can say the predominant value or age is one number. Heck, it takes 3-10 years for some subdivisions to be completed.

    Do a truthful honest job and just give a predominant range of value and age if that is the truth. If underwriters don't like it, ask them to read the Fannie Mae guidelines.

     
  2. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    4
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    That's because you've never reviewed any of mine.
     
  3. Mr Rex

    Mr Rex Elite Member

    246
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    I agree with the first part of your rant. But.....with some of the statistical stuff available on some MLS systems, I can and do use a single point rather than a range. You mention that some subdivsions take 3-10 years to complete. Which year were most of the homes built?
     
  4. Tim Hicks (Texas)

    Tim Hicks (Texas) Elite Member
    Gold Supporting Member

    72
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    Gee, if they build about the same number of homes each year, who would know. That is why one number is ridiculous in most instances.

    Statistical stuff usually means "average" not predominant. You could have 12 homes at $100,000 and 12 homes at $200,000 and the MLS would give you a $150,000 statistic. How would that be the predominant value?
     
  5. Mr Rex

    Mr Rex Elite Member

    246
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Statistics aren't all limited to the average as you describe. You can do some neat things if you know how.:new_smile-l: BTW, have you ever seen a little ditty called Realist?
     
  6. David Wimpelberg

    David Wimpelberg Moderator Staff Member Moderator

    149
    Mar 30, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    Just another reason why I prefer narrative formats. I can explain the neighborhood and market characteristics without having to deal with check boxes and little slots that can only fit one number.
     
  7. Ariba

    Ariba Senior Member

    2
    Feb 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Predominant - most frequent or common. Not necessarily a range IMHO
     
  8. Brian Weaver

    Brian Weaver Senior Member

    6
    Apr 16, 2005
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Illinois
    It's a mode not a mean.
     
  9. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    Top Poster Of the Month

    755
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    true enough but its probably best just a good judgment call. The problem is exactly what Hicks said...except when its a reviewer...
    These are the sales in a town. the top one is 35 ac with a huge commercial shop and 4000 SF builders house. The appraiser called the Range 140 - 250
    The reviewer disagreed saying the range was 120 - 750...so much for reviews...
    These are the sales
    775
    289
    280
    246
    246
    227
    214
    195
    194
    188
    173
    168
    165
    160
    159
    155
    152
    152
    145
    137
    135
    132
    129
    122
    119
     
  10. Kendall Jackson

    Kendall Jackson Member

    0
    Oct 9, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    I love the million dollar appraisals where the subject has comps miles away and most homes in area are say mid 300's. Dont you know the predominant value per report is $1,000,000
     
Thread Status:
Not open for further replies.

Share This Page