I totally concur that what I believe is not what Fannie Mae believes. That doesn't make them right either but it does support the old adage..."those who have the gold make the rules".
It is my not so humble opinion page 1 should reflect the over-all residential market, not just single family detached. This would include single family detached, townhouse, and condo. This then becomes quite broad in value. I'm also conflicted when it comes to present land use %. IN MY MARKET, it is very difficult to accurately populate this section without extensive market research. Quite often there are conversions of single family to 2 - 4 unit that are impossible to determine. This is especially true in older neighborhoods.
The top of page 2 clearly says "comparable properties". Again, in my opinion, there is no way this is going to match what is on page 1. It's also my opinion Fannie Mae felt a need to expand the reporting of the appraiser's determination of market trends by adding the 1004mc. The data in the inventory analysis asks for "comparable sales" and "comparable active listings (competition)". Again, that data won't match page 1 of the 1004 but it should match page 2.
The lower section of the MC form does provide space to SUMMARIZE the above information as support for my conclusions in the Neighborhood section of the report. I see this as two distinctly different reporting areas and have so said in my comments. I also have some heartburn with deciding what is the actual neighborhood. Quite often there might be several different subdivisions, MLS marketing divisions, and/or neighborhoods that buyers would consider for comparable properties and these might be as close as to be within a mile of the subject property. As an example, in N/E Colorado Springs there are 4 subdivisions where children attend the same grade school and all are, technically, competing for the same buyer. For that reason I often will conduct my search for comparable sales by MLS map grid.
As I said in my first post in this thread..."this is the kind of thing that needs to be covered in continuing education seminars or courses". Conversations with SARs, Underwriters, and VA Staff Reviewers/Appraisers has lead me to the conclusion there is much confusion about this and no one seems to have a single answer.
Danny, Thank you for your comment. I know my interpretation is in conflict with the "intent" of Fannie who has saddled us with a poorly designed form.
community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.
