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Page 1 One Unit Housing Trends

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norapp

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Jul 11, 2016
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Certified Residential Appraiser
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New York
I am doing some continuing ed on McKissock. I have seen a long discussion on what is required for neighborhood on page 1 versus what is required for mc addendum and top of page 2. I have copied and pasted from McKissock the Fannie Mae requirements. This is not how I put my neighborhood nor do I agree with this. Frankly I am stumped by what I am reading. See Below.

It’s time for another fact-or-myth question. This is question #8.

The one-unit housing trends on page 1 of the URAR form must reflect those properties that are deemed competitive with the subject, not the entire defined neighborhood—is that a fact or a myth?

Fact or Myth?
That is a fact. According to the Selling Guide, when completing the one-unit housing trends portion of the neighborhood section of the form, the trends must be reflective of those properties that are deemed competitive with the subject, not the entire defined neighborhood.

This is a pretty significant change from how appraisers have been filling out this section of the form for many years. On the next page we’re going to show you the exact language used by Fannie Mae so you can take this to heart and understand it.

If the neighborhood contains properties that are truly competitive, then all properties would be reflected.
WHAT?
However, when a segmented or bifurcated market is present, the one-unit housing trends portion must reflect those properties from the same segment of the market as the property being appraised. This ensures the analysis being performed is based on competitive properties. It goes on to provide an example: if the neighborhood contains a mix of property types not considered competitive by market participants, then that would be a segmented or bifurcated market, and the appraiser would not consider all of the properties in the neighborhood when developing the one-unit housing trends.
When an appraiser is filling out the forms and indicating the price range of properties in the neighborhood and predominant prices, the price range is supposed to reflect high and low prevailing prices for whatever the type of property that is being appraised.
 

TRESinc

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Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
been like that for years...
 

norapp

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Jul 11, 2016
Professional Status
Certified Residential Appraiser
State
New York
I guess my head has been in the sand. My neighborhood trends have always included all sales of 1 family homes. When did this change??? I have been appraising since 1996. So you only include housing trends of similar homes that sold and not all 1 family homes??
 

TRESinc

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Dec 1, 2011
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Licensed Appraiser
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Ohio
that's what FNMA wants. the one-unit trends on page 1 should match what the 1004MC says, similar to the active listings and closed sales on top of page 2 should match the 1004MC data. i always add more to my reports explaining what is happening in the entire neighborhood.
 

DWiley

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Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
that's what FNMA wants. the one-unit trends on page 1 should match what the 1004MC says, similar to the active listings and closed sales on top of page 2 should match the 1004MC data. i always add more to my reports explaining what is happening in the entire neighborhood.


To the OP - See Question 17 - Been this way for over 5 years now
https://www.fanniemae.com/content/FAQ/appraisal-property-report-faqs.pdf
 
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BRCJR

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Licensed Appraiser
State
Virginia
I think it was September 30, 2014 Selling guide revisions. Not positive but, it has been a while back.
 

norapp

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Jul 11, 2016
Professional Status
Certified Residential Appraiser
State
New York
link didn't work for me, here is the doc.

Well call me a dumb *** because I did not know this had changed. IMO this is ridiculous. You should be reporting on the neighborhood/market area as a whole. Including just comparable sales is misleading.
 

BRCJR

Elite Member
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Joined
Sep 20, 2005
Professional Status
Licensed Appraiser
State
Virginia
Well call me a dumb *** because I did not know this had changed. IMO this is ridiculous. You should be reporting on the neighborhood/market area as a whole. Including just comparable sales is misleading.
Report on the neighborhood via commentary......
 
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