So Fannie insists in their Selling Guide the following (the rules we have been under). So those who will be working for 30-years into the future, what criteria set forth by Fannie will you reject? Could the GSEs be the real racist after all?
"The appraiser’s analysis of a property must take into consideration all factors that have an effect
on value. The appraiser must analyze all closed sales, contract sales, and offerings or listings of
properties that are the most comparable to the subject property in order to identify any significant
differences or elements of comparison that could affect his or her opinion of value for the subject
property as of the effective date of the appraisal report. This is particularly important in changing
(increasing or declining values) markets. Analyzing closed sales, contract sales, and offerings
or listings is an important analysis in any market and will result in more accurate reporting on
market conditions, including trends that indicate that sale prices for contract sales and asking
prices for recent offerings or listings have changed. (Also see B4-1.3-03, Neighborhood Section
of the Appraisal Report, for information regarding Trend of Neighborhood Property Values,
Demand/Supply, and Marketing Time.)
..................
Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Requirements, Appraisal Report Assessment
April 15, 2014
Comparables that are significantly different from the subject property may be acceptable;
however, the appraiser must describe the differences, consider these factors in the market value,
and provide an explanation justifying the use of the comparable(s).
Comparable sales from within the same neighborhood (including subdivision or project) as the
subject property should be used when possible. Sale activity from within the neighborhood is
the best indicator of value for properties in that neighborhood as sales prices of comparable
properties from the same location should reflect the same positive and negative location
characteristics.
Fannie Mae does allow for the use of comparable sales that are located in competing
neighborhoods, as these may simply be the best comparables available and the most appropriate
for the appraiser’s analysis. If this situation arises, the appraiser must not expand the
neighborhood boundaries just to encompass the comparables selected. The appraiser must
indicate the comparables are from a competing neighborhood and address any differences
that exist. The appraiser must also provide an explanation as to why he or she used the
specific comparable sales in the appraisal report and include a discussion of how a competing
neighborhood is comparable to the subject neighborhood.
Selection of Comparable Sales
The appraiser is responsible for determining which comparables are the best and most
appropriate for the assignment. Fannie Mae expects the appraiser to account for all factors that
affect value when completing the analysis. Comparable sales should have similar physical and
legal characteristics when compared to the subject property. These characteristics include, but
are not limited to, site, room count, gross living area, style, and condition. This does not mean
that the comparable must be identical to the subject property, but it should be competitive ....
Unacceptable:
--failure to use comparable sales that are the most locationally and physically similar to the subject property;
--selection and use of inappropriate comparable sales;
--failure to comment on negative factors with respect to the subject neighborhood, the subject property, or proximity of the subject property to adverse influences;
You guys have no answers to the questions being asked of the profession and all you guys are doing is crying that you are not racist.