Condo on URAR? -working on a review.

[brad sanzenbacher]

I was taught that condos always go on the condominium form and never have considered using a URAR, or even thought about the possibility. What's the general consensus on this? I am working on a review in which the appraiser reports a condo on the URAR and he includes the cost approach. As I said, I have never even considered this but as I sit here and think about it, I'm leaning towards "no problem". Any input is appreciated.

What's interesting is that I have another review next in my queue that is a report completed by the same appraiser on the unit next door with the same effective date but it's on a condo form. Weird...

Thanks in advance. -b

 

[Mike Kennedy]

Did you confirm the subject IS a Condo and not a SFR Townhome in a PUD or outside a PUD?

Conversely, it is possible the appraiser didn't perform Due Diligence.

 

[brad sanzenbacher]

I have confirmed it's a condo.

 

[brad sanzenbacher]

And he calls it a condo in the URAR.

 

[Mike Kennedy]

2010 Fannie Selling Guide​

"The following list provides Fannie Mae’s appraisal forms (see Single-Family Forms for a complete list):
Form Purpose
Uniform Residential
Appraisal Report
(Form 1004)
For appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory apartment) based on interior and exterior property inspections.
Form 1004 also may be used for two unit properties, if each of the units is occupied by one of the co-borrowers
as his or her principal residence or if the value of the legal second unit is relatively insignificant in relation to the total value of the property (as might be the case for a basement unit or a unit over a garage). ​

In addition, appraisals for units in condo projects that consist solely of detached dwellings may be documented on Form 1004, if the appraiser includes an adequate description of the project and information about the homeowners’ association fees and the quality of the project maintenance."​

Printed copies may not be the most current version. For the most current version, go to the online version at​

http://www.efanniemae.com/sf/guides/ssg/. 483

 

[VegasWayne]

How old is the appraisal. FHA required that condo's be appraised on a 1004 form prior to 2005.

 

[Pittsburgh Pete]

Would love to see the condo cost approach!!

I suppose a condo could be completed on a SF form with adequate addenda etc. to cover all the necessary info required. Why, is another question entirely!

 

[brad sanzenbacher]

06/23/05

You would love to see more than just the cost approach on this one. It's a mess. The guys says that he came up with his site value by dividing the number of units by the value of the entire parcel: 120 units, $16,000 site value- you do the math. However, just 3 years prior, the entire complex was purchased for $402,000, Again, do the math. It's a mess for sure. And like I said, I have another one ON A CONDO FORM from the same appraiser on the unit next door with the same effective date. And get this: identical units but two different figures for GLA. I'm not enjoying this at all. It's why I hate doing reviews... but these days I take it where I can get it.

 

[TJSum]

How old is the appraisal. FHA required that condo's be appraised on a 1004 form prior to 2005.

????? You might want to reconsider that statement. There was a time when they wanted 2-4 units on the 1004, but not a condo, at least in this part of the country.

Back to the OP, how can the appraiser do two condos side by side, on the same day, and put one on the 1004 and the other on the Condo Form? Why would they do that anywho, why create all the extra work. Something smells very fishy here. I'd ask the Client if you are allowed to contact this appraiser, it could be a case of someone stealing his signature, or whatever...

 

[brad sanzenbacher]

I agree. The whole thing stinks to high heaven.