One-unit Housing Trends In Neighborhood Section

[Frederick R. Ruffell]

Well aware what Fannie Mae says. Not concerned.

I couldn't care less how an appraiser does it, as long as explained within the report. I state I follow the 1004 instructions and not FNMA. I state why, what, who, where data is.

Or if I wanted to follow FNMA,

I'd state I DID NOT follow the 1004 forms instructions but followed FNMA instead.

Either way fine by me as you explained to the reader. You could do a 4 unit complex on a 1004 for all I care, just explain.

The 1004 and the 1004MC ARE published by FNMA. When you elect to use any FNMA published form it is reasonable that any Intended User would expect that you followed all FNMA guidelines. If you do not intend to follow those guidelines then you should not use a FNMA form, use a GPAR or a full narrative. To do otherwise can (and has) been viewed a misleading, which is a USPAP violation. Just sayin.....

 

[Dublin ohio]

I follow the pre-printed instructions

Read the instructions on the 1004mc and then reconcile your above statement. Just sayin.

 

[Deleted member 134708]

Not at my work PC.

But near end of 1004mc says something like ....apply criteria a prospective buyer would....

Aka 1004mc is comps. Per pre-printed language. I tell reader my criteria applied.

Page 1 says 1 unit housing trends. I give 1 unit trends. And state so.

 

[Deleted member 134708]

If want to do it the FNMA way, all for it. I'd personally state you didn't follow 1004 instructions but FNMA and all good.

 

[TRESinc]

Not so. Here in San Diego it is VERY questionable that a property not listed on the MLS was exposed to an Open Market. Therefore not an arms length transaction nor meeting the definition of Market Value.

the 1004MC does not mention non-arms length transactions nor market value. it says:

The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject
neighborhood. This is a required addendum for all appraisal reports with an effective date on or after April 1, 2009.

Instructions: The appraiser must use the information required on this form as the basis for his/her conclusions, and must provide support for those conclusions, regarding
housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent
it is available and reliable and must provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an
explanation. It is recognized that not all data sources will be able to provide data for the shaded areas below; if it is available, however, the appraiser must include the data
in the analysis. If data sources provide the required information as an average instead of the median, the appraiser should report the available figure and identify it as an
average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria that would be used by a prospective buyer of the
subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, foreclosures, etc.


so again, by putting that statement in your report you are admitting that you are not completing the report as it should be done. in the end it's your report and you can complete it any way you like. i was merely trying to help you from putting highlighter on something that you are doing wrong.

 

[Rich Heyn]

Rich, in that BLOG article you quote FNMA as "...The appraiser may state the predominant price as a single figure or as a range, if more appropriate." form the September 30th 2014 Selling Guide.
Is this no longer their stance?

My mistake. It can be reported as either.

 

[Eli]

My mistake. It can be reported as either.

What can be reported as either?