My 1007 Test

[Addie]

Yes you need to include a definition of the value you are reporting but it isn't Market Value, it is Market Rent. Considering you have someone that is training you I assume you have access to the Dictionary of Real Estate, 6th Edition. The definition you seek is in there.

Ok. So this is from the 8th edition.

“MARKET RENT: the Rent that a comparable unit would command if offered in the competitive market.”

Can I just use that as my definition and cite Barron’s 8th edition Real Estate Terms? asking for 2 reasons. #1 want to know. #2 just seems too easy (as should be) in the world of lawyers in 2018.

 

[Elliott]

Addie,
I hate to tell you this, but even if your 'cheating' you failed the test. No self respecting certified appraiser would do a stand alone 1007. The right answer is, "What, I didn't do the appraisal and you want me to do a 1007? Sorry, not interested."

 

[George Hatch]

With respect, there are veteran appraisers out there who wouldn't know the answer to these questions off the top of their head, so in my book that makes these legitimate questions to ask on this forum. Some of us may suffer from Toxic Appraiser Personality Syndrome but I think the crowd's competency is considerable so long as the person asking has thick enough skin to pay the "get off my lawn" toll that sometimes goes with the answer. Only Allah knows how many appraisers we (myself included) have driven off over the years with our antics.

I also note that the OP said it was her supervisor who asked the questions and put the challenge to her to find the answers. I think that counts for something, too. With that said, we tend to value more highly - and remember - information that we had to figure out for ourselves as opposed to being given to us, so there's some merit to the idea of exhausting her other resources first and save the lifeline call as a last resort.

 

[DWiley]

Not questioning you. I believe you. But in this day and age with lawyer speak. Where did the appraiser ever cite the source?

Just like on the FNMA form has check box for h&b use doesn’t mean it fulfills USPAP.

USPAP says cite the source. It’s common sense that source is FNMA. But USPAP doesn’t say use common sense.

For most residential appraisers the citation usually comes from use of the form itself. The ASB has published an FAQ stating that when using such forms the fact that the form contains the definition is sufficient to meet the requirement to cite the source.

For narrative reports, or for forms that do not contain a pre-printed definition, the appraiser may cite the definition and its source anywhere in the report. Most narrative reports have a page/section dedicated to providing the applicable definition and its source. Other than certification items and a couple of other exceptions, USPAP does not dictate where in a report most things have to be.

 

[EddieB]

A similar thread from years back addresses same questions

https://appraisersforum.com/forums/threads/rent-schedule-only.212255/

 

[Lee Lansford]

Not questioning you. I believe you. But in this day and age with lawyer speak. Where did the appraiser ever cite the source?

Just like on the FNMA form has check box for h&b use doesn’t mean it fulfills USPAP.

USPAP says cite the source. It’s common sense that source is FNMA. But USPAP doesn’t say use common sense.

When communicating the appraisal with a Fannie form, the citation of the source of the definition is integral to the form. It's a Fannie form, eh? Yes. Ipso facto.

 

[DWiley]

With respect, there are veteran appraisers out there who wouldn't know the answer to these questions off the top of their head, so in my book that makes these legitimate questions to ask on this forum. Some of us may suffer from Toxic Appraiser Personality Syndrome but I think the crowd's competency is considerable so long as the person asking has thick enough skin to pay the "get off my lawn" toll that sometimes goes with the answer. Only Allah knows how many appraisers we (myself included) have driven off over the years with our antics.

I also note that the OP said it was her supervisor who asked the questions and put the challenge to her to find the answers. I think that counts for something, too. With that said, we tend to value more highly - and remember - information that we had to figure out for ourselves as opposed to being given to us, so there's some merit to the idea of exhausting her other resources first and save the lifeline call as a last resort.

It sounds me like she has a good supervisor who is actually trying to get her to learn things. . Note that in the spirit of learning I tried to give resources and hints rather than specific answers.

And, for the record, I had a property manager client who asked me for market rent appraisals from time to time, and the form 1007 made a good basis to build such reports from. Of course that made me go through the same exercise as the OP.

 

[Meandering]

So why would a mentor give a trainee a test, of material the mentor did not teach, if the purpose of the test was to see how much the trainee had learned?

.

Doing a test 1007 for my supervisor to gauge how I'm coming along.

 

[Michigan CG]

USPAP says cite the source. It’s common sense that source is FNMA. But USPAP doesn’t say use common sense.

There is a big world beyond FNMA and many times that source is not FNMA. I am going to guess I have used more than five definitions of value and less than ten in my career.

“MARKET RENT: the Rent that a comparable unit would command if offered in the competitive market.”

Can I just use that as my definition and cite Barron’s 8th edition Real Estate Terms? asking for 2 reasons. #1 want to know. #2 just seems too easy (as should be) in the world of lawyers in 2018.

I am guessing you found that on-line. First of all that is not sufficient. Second, what year is that from? Third, if you ever get into non-lender work you will want to use AI publications as they are the most accepted in the industry and in higher courts the most accepted. Does your mentor have the 6th Edition of The Dictionary of Real Estate Appraisal?

 

[Michigan CG]

So why would a mentor give a trainee a test,

Possibly a good mentor? There are very few good mentors right now. I am guessing most "mentors" in the current day are idiots who are manipulating the trainees and not teaching them anything but the list of adjustments from 2005.