71B form for Mixed Use property(residential and commercial)

[justin7777]

I haven't owned an appraisalware program in the last 10+ years. (I do all my report formats in Excel so I don't have this problem).

But when I was using Total I'd open a 2nd file with just the report form and an extra comps page and fill out the extra comps page by itself and use that. Add as an addendum. Same as I was doing when I wanted to grid land sales for a URAR or other form that didn't have a grid. Or you can insert a table into an addendum page and fill that out manually. Or take a screen grab of your extra comps page and add the image to an addendum page. There are probably other solutions at this point that I never got around to but the bottom line is that whatever you're doing in your narratives will probably also work with the formsware addenda pages.

Thank you so much for all the advice.

The client eventually decided to switch from the 71B form to a narrative report. This building is a two-story mixed-use property, with retail on the first floor and a 3-bedroom residential unit on the second floor.

Last year, I was asked to appraise a building using the 71B form. The property consists of 3 buildings on one lot: 2 residential buildings (2 units per building) and 1 retail building. Out of the total 5 units (4 residential and 1 retail), 80% of the units are residential, so I thought there wouldn't be an issue using the 71B form.

 

[justin7777]

You CAN use any form for any appraisal. USPAP is silent on that issue. The question is whether you SHOULD use it or not.

Per USPAP you MUST consider every approach for every appraisal. There are two valid reasons for omitting an approach. 1- The approach is not applicable... like the Cost Approach for a land appraisal. 2- The approach is not necessary for credible assignment results. That's a judgement call by the appraiser... however, that decision is subject to being evaluated by a reviewer or underwriter. Too often I've reviewed an appraisal report where the appraiser said something like 'Income Approach not developed due to insufficient rental data' and then a few days later, I see an appraisal report in the same neighborhood where the appraiser miraclously found plenty for rental data. The difference? The Client for the 2nd assignment required the Income Approach as an assigment condition. "Not required by the Client" is never acceptable as a reason for omitting an approach.

As for help, the Form is not the appraisal. The form does not change the requirements of the appraisal report. The report either meets the requirements of 2-2(a) or 2-2(b) or it doesn't. It's your job to make sure the report complies with one of those standards. The form really only dictates how the report looks.

I agree with George. The legacy GSE forms are very out of date. A GP form would be better. Talk to your Client.

Thank you so much for all the advice.

The client eventually decided to switch from the 71B form to a narrative report. This building is a two-story mixed-use property, with retail on the first floor and a 3-bedroom residential unit on the second floor.

Last year, I was asked to appraise a building using the 71B form. The property consists of 3 buildings on one lot: 2 residential buildings (2 units per building) and 1 retail building. Out of the total 5 units (4 residential and 1 retail), 80% of the units are residential, so I thought there wouldn't be an issue using the 71B form.

 

[justin7777]

Justin: Part of your solution depends on where you are getting the form from and how you are going to deliver the appraisal to your client.

Your form provider might be able to offer a solution for adding an extra page(s) of comparables depending on the technology of how the form is compiled in their software -- I don't know about those specifics or details, but it might be worth asking them if they have a solution.

On the other hand, if you are delivering your appraisal to your client as a PDF via email, it might be easy enough to fill out a second set of grids for the commercial unit, then print it / save it as a PDF, and then combine the PDF of the primary pages of your report with the additional PDF page(s) of your commercial grid(s). Your PDF software might allow you to merge/combine PDF files and arrange the pages as you want them; there is also free software on the web to do this, too.

Good luck!

Marty S.

Thank you so much for all the advice.

The client eventually decided to switch from the 71B form to a narrative report. This building is a two-story mixed-use property, with retail on the first floor and a 3-bedroom residential unit on the second floor.

Last year, I was asked to appraise a building using the 71B form. The property consists of 3 buildings on one lot: 2 residential buildings (2 units per building) and 1 retail building. Out of the total 5 units (4 residential and 1 retail), 80% of the units are residential, so I thought there wouldn't be an issue using the 71B form.