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  #1  
Old 01-01-2009, 12:51 PM
joe lee joe lee is offline
 
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Default Comp order question and Fannie Mae

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...
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Old 01-01-2009, 12:53 PM
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PropertyEconomics PropertyEconomics is offline
 
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Quote:
Originally Posted by joe lee View Post
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...

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.
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  #3  
Old 01-01-2009, 01:12 PM
Randolph Kinney Randolph Kinney is offline
 
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Quote:
Originally Posted by joe lee View Post
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...
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  
Old 01-01-2009, 01:31 PM
Doug Wegener Doug Wegener is offline
 
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You should educate him that it is not, but do it anyway. Its the sort of request which doesn't compromise your integrity.
  #5  
Old 01-01-2009, 01:46 PM
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Mike Kennedy Mike Kennedy is offline
 
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http://www.allregs.com/efnma/index.a...-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.a...-406/xi-406.05
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Last edited by Mike Kennedy : 01-01-2009 at 02:28 PM.
  #6  
Old 01-01-2009, 01:50 PM
Proactive Proactive is offline
 
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Originally Posted by Doug Wegener View Post
You should educate him that it is not, but do it anyway. Its the sort of request which doesn't compromise your integrity.

I like Doug's answer best...
  #7  
Old 01-01-2009, 02:03 PM
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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.
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  #8  
Old 01-01-2009, 03:00 PM
Tom Woolford Tom Woolford is offline
 
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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.
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  #9  
Old 01-01-2009, 03:35 PM
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Mister Ed Mister Ed is offline
 
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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).
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  #10  
Old 01-01-2009, 05:08 PM
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Quote:
Originally Posted by Greg Boyd View Post
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.
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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