Purposely Mis-reporting Form Requirements ?

[Zoe]

DWiley, You are correct, but i forgot that. I always filled it in right, but accidentally.

When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report, the trends must be reflective of those properties deemed to be competitive to the property being appraised. If the neighborhood contains properties that are truly competitive (that is, market participants make no distinction between the properties), then all the properties within the neighborhood would be reflected in the One-Unit Housing Trends section.


HEY, just because all my little urban row homes look alike doesn't make me using that template an easier appraisal. Just like subject 20 minutes away. with all the comps within 3 city blocks. Now that doesn't makes my appraisals cookie cutterville. It's called a cookie cutteradelphia.

I am not arguing with you on some confusion in it. I agree with you.

 

[Tom D]

I was just agreeing with your smartness to bro, just wanted to show an official fannie wording.

 

[sputnam]

This is the reverse of the proper way to complete the NEIGHBORHOOD section on form 1004/70.

Most of the data in this section should be based on the entire neighborhood. The exception is the One-Unit Housing Trends, which should be based on the segment of homes competing with the subject.

View attachment 103878

This is because in any given neighborhood different market segments may exhibit different trends. The trends reported in that case should be the trends that affect the subject property, not the overall trend for the neighborhood.

I live in a large development with a variety of homes sizes. At one point in time it was very clear from market data that the prices for larger homes in the area were declining, while at the same time prices for the smaller homes were increasing. For an appraisal report in this neighborhood at that time, most of the data reported would be the same, regardless of the home type, but the One-Unit Housing Trends would be different, depending on the market segment that the subject property was in.

Confusion on this issue is one reason why the new UAD addresses the market area rather than the neighborhood.

Correct. The two lines above the grid and the 1004MC when completed are about competing properties. The neighborhood section of the form is about the neighborhood.

 

[Tom D]

So then your market time adjustments are based on the competing properties, not the neighborhood time line, or the county time line.

 

[DWiley]

..... The neighborhood section of the form is about the neighborhood.

That is mostly true. The One Unit Trends, which is in the neighborhood section, is about the competing properties (for the reasons cited previously), not the neighborhood as a whole.

 

[ZZGAMAZZ]

Also curious: should appraiser duplicate pertinent 1004MC comments on to the page 1 Market Research narrative, or describe the difference or similarities between the two markets on the page 1 market narrative, or just refer the client to thr 1004MC?

 

[sputnam]

That is mostly true. The One Unit Trends, which is in the neighborhood section, is about the competing properties (for the reasons cited previously), not the neighborhood as a whole

Incorrect. The one unit trend in the neighborhood section is about ALL one unit housing in the neighborhood. Detached SFR, attached SFR, condominiums.... $50,000 or $500,000. Not just about properties that are directly competing with the subject...

 

[Tom D]

I posted this earlier from fannie. It doesn't seem to suggest your opinion. Am i reading it wrong.

When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report, the trends must be reflective of those properties deemed to be competitive to the property being appraised. If the neighborhood contains properties that are truly competitive (that is, market participants make no distinction between the properties), then all the properties within the neighborhood would be reflected in the One-Unit Housing Trends section.

 

[DWiley]

Incorrect. The one unit trend in the neighborhood section is about ALL one unit housing in the neighborhood. Detached SFR, attached SFR, condominiums.... $50,000 or $500,000. Not just about properties that are directly competing with the subject...

Perhaps you should read the instructions provided by one of the designers of the URAR. I referred to it before, but here is a link to the actual text.

B4-1.3-03, Neighborhood Section of the Appraisal Report (06/04/2025)

This topic contains information on reviewing the Neighborhood section of the appraisal report form, including

selling-guide.fanniemae.com

"When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report, the trends must be reflective of those properties deemed to be competitive to the property being appraised. If the neighborhood contains properties that are truly competitive (that is, market participants make no distinction between the properties), then all the properties within the neighborhood would be reflected in the One-Unit Housing Trends section. The appraiser's analysis of the property value housing trend section (increasing, stable, declining) must include factual data from information sources such as, but not limited to, market data, home price indices, multiple listing services, public records, and/or models. The trend indicated in the appraisal report must reflect the overall movement of the market based on a minimum of 12 months of data."

 

[DWiley]

I posted this earlier from fannie. It doesn't seem to suggest your opinion. Am i reading it wrong.

When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report, the trends must be reflective of those properties deemed to be competitive to the property being appraised. If the neighborhood contains properties that are truly competitive (that is, market participants make no distinction between the properties), then all the properties within the neighborhood would be reflected in the One-Unit Housing Trends section.

You are not wrong, but this is a concept that some exhibit an extreme unwillingness to accept

I will admit that I was also dubious when I first heard this. However, the more one conducts in depth market analysis, the more one can see why it is actually a necessary thing. I have seen neighborhoods where three different market segments were experiencing three different market trends (increasing, stable, decreasing) all at the same time. In such a case, reporting an "overall" trend based on all the properties in the neighborhood is meaningless, especially when one considers the intended use of an appraisal reported in the URAR.