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Fannie Mae Guidelines

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Gail Richards

Thread Starter
Freshman Member
Joined
Apr 2, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Could someone please help me. I am doing an appraisal on a log home in Texas. There is not an abundance of these around, however, they do exist. My question is according to Fannie Mae, aren't I supposed to use sales of LOG HOMES as comparables? This is an understanding that I have had for sometime. Is it possible that I am wrong or that the guidelines have changed? Any help would be appreciated.

Gail
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
It is not a FNMA guideline, but you will have lender requirements of usually at least two log home sales. You may have to go over a year as a fourth comp, but most lenders will require two. Try to use wood sided or other less typcial homes for you other comps. I have gotten away with only one log home comp before, but then I had to give them a letter re-stating there were no other log home sales.
 

brunge

Sophomore Member
Joined
Aug 24, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I have had the pleasure of appraising a log home in an area where are they are extremely rare. As with all assignments I try not to sweat the fact that there may not be ideal comparables available for use. I diligently research the sales within the last 2 years (more in some case) and then narrow it down to the most suitable for use. If there are no log home sales available, then there are no log home sales available. I can’t make them up. The cost approach will help you. You may even want to call a log home builder in your region for cost estimates.
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
When faced with a lack of log home sales I have used:

1. older sales (prior 2 years) as comps 4, 5, 6 etc

2. some current listing information as additional data

3. pictures of other log homes in the subject's market that might not have sold, but provide evidence of market acceptance for this style.

4. have also found talking with the underwriter upfront can save hours of needless frustration!!

Good Luck!
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Good reply from George. I have had to use the same methods in the past.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Gail-
There are log homes, generally in Denton and Collin counties. The qualities vary significantly as do condition. I agree that you can go back as far as 2 years. Also, if you've never done one before, be aware of the differences in construction. Kiln-dried spruce that is pre-notched doesn't shrink, whereas green pine shrinks significantly, pops the caulking out and is very succeptable to insects. There is also a significant variance in sales prices. Also, you might get some from the Tyler area and adjust for location/land value as 4th and 5th comps if you can't find satisfactory comps.

Roger Strahan
 
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