6 Unit Apartment Complex and Form 71b

[Colorado Guy]

Hello,

I'm working with a CG/MAI who does multi-family units in our market area on a very regular basis - but these reports are typically narrative.

We received a request to complete a 6-unit complext on a form 71b. I found the form in Wintotal (FHLMC Form 71B-Rev. 8/77 [Y2k]. It has a statement on the top of the appraisal as follows, "This form may be used for appraisal of income producing properties provided the loan requested does not exceed $750,000."

I have a few questions:
1. Is this the latest verision of this form?
2. Has anyone used this form - if so, a PM would ve greatly appreicated
3. Anyone consider the statement on the form appraising to a pre-determined value? At this point, I have no idea of the loan amount and no idea of the appraised value (barely getting started here...)

Thanks!

 

[Walter Kirk]

The use of standard forms for reporting appraisals is convenient and inexpensive. Unfortunately the more complicated or rare the subject property the more difficult it is to properly report the appraisal on a form.

One to Four unit apartments are far more common in most markets that five and more unit buildings and thus there are more comparables and avaliable market data. Although a six unit building isn't much larger than say a four unit the typical buyer and typical motivation might be quite different making the appraisal of a larger building more difficult to report in any format.

I wouldn't attempt to report a six unit on a 71b without lots of addenda, which would negate the benefit of using a form.

 

[George Hatch]

I commonly use this form for these types of properties. This form dates back to the late 70s, so I ignore the $750k limitation on the front.

It does require some clean-up items in the addenda but no more so than for the new Fannie forms. I've got an inspection to do today but I'll send you a PM later on it.

 

[Colorado Guy]

Thanks Geroge

Look forward to your PM

 

[Restrain]

Small lenders like these - easy to read, doesn't take up 6" of space in the file.