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Minimum Of Two Listings Per Fannie

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Certified Residential Appraiser
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Pennsylvania
Can anyone point me to the supposed requirements of FNMA that at least two comparable listings be included in an appraisal report? I simply cannot find anything in the literature that confirms this. I am finding this to be a requirement of a number of clients and some point to recent FNMA requirements. The worst part is some of these clients provide no "out" when there are no listings available. This is more and more the case, especially among atypical rural properties around me; predominant marketing times are approaching 30 days and I am lucky to find three real comparables in the last year. This results in having comps for 2-3 months out of a year. And besides, prices for highly variable rural estates provide almost no usable information for an appraiser as they might in a situation with tract housing.
 

Lisle

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Oct 16, 2007
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Certified Residential Appraiser
State
New York
From the FNMA Selling Guide:

Minimum Number of Comparable Sales


A minimum of three closed comparables must be reported in the sales comparison approach.
Additional comparable sales may be reported to support the opinion of market value provided by
the appraiser. The subject property can be used as a fourth comparable sale or as supporting data
if it was previously closed. Contract offerings and current listings can be used as supporting data,
if appropriate.

"...listings can be used.." - Not Required
 

Michigan CG

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Nov 1, 2006
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Certified General Appraiser
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Michigan
Can anyone point me to the supposed requirements of FNMA that at least two comparable listings be included in an appraisal report?

It doesn't exist.

The worst part is some of these clients provide no "out" when there are no listings available.

Tell them to pound sand. You cannot put something in a report that does not exist and it would be a violation of USPAP to include a listing that is not comparable.
 

J Grant

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Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I can't find it in fannie either. In situations where no good 2 listings can be found, if you use listings from out of area or just plain not similar, say they are only included as a client requirement and no consideration placed on them.
 

ucbruin

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Mar 11, 2014
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Certified Residential Appraiser
State
Massachusetts
I've found, if comparable listings/pendings don't exist, a 1 line sentence stating such has sufficed and the lender/AMC "requirement" is waived.

Have you tried that?
 

glenn walker

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Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Delete.. Looking in the Fannie Book : ) LOL
 
Last edited:

Flakey

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Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
South Carolina
Someone will be along in a minute to tell you "it's an assignment condition" and you have to do it.
 

DWiley

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Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
I simply cannot find anything in the literature that confirms this.

It is generally hard to find that which does not exist :) There is no Fannie requirement for listings. Some clients do have this as an "overlay" (aka an assignment condition).

When faced with limited listing data, I would put myself in the shoes of a potential buyer. If I did not buy the subject (assume someone got their contract in just a few minutes before I did), what other listings would I have to consider? That is the best listing data available, regardless of how dissimilar it is.
 
Last edited:

DWiley

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Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
There is a difference in assignment conditions and someone pushing it off an FNMA and lying that it is a FNMA requirement.
It is amazing all the things I have heard as alleged Fannie requirements. It is almost, but not quite, as bad as all the things alleged to be USPAP requirements :) In most cases I have found the issue to be ignorance rather than deception, but YMMV.
 
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