Short Term Rentals in a 1007

[OG80]

I just received an order for a 1004 and 1007 and in the 1007 they said they want me to use STR's. Does anybody have any experience/wisdom on how best to accomplish this? I appreciate your time and help.

 

[CGinMN]

Appraiser Update | Fannie Mae

Welcome to our June 2024 Fannie Mae Appraiser Update.

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[JTip]

That is like putting unleaded gas in a diesel engine. You can do it, but it's wrong and you will get in trouble.

 

[Elliott]

I suggest you drop bread crumbs throughout the report about the current or prospective use being a short term rental. You'll then be asked to remove them, but at least Fannie was warned.

 

[J Grant]

per post 2 , if the appraisal is for fannie or freddie the appraiser can not use short term rentals, they must use monthly ( or annual ) lease rates.

So you need to tell your client no. A great word to practice in the career of an appraiser.

 

[OG80]

per post 2 , if the appraisal is for fannie or freddie the appraiser can not use short term rentals, they must use monthly ( or annual ) lease rates.

So you need to tell your client no. A great word to practice in the career of an appraiser.

Just informed them that I won't be completing the assignment.

Thank You to everyone!

 

[chad hampton]

per post 2 , if the appraisal is for fannie or freddie the appraiser can not use short term rentals, they must use monthly ( or annual ) lease rates.

So you need to tell your client no. A great word to practice in the career of an appraiser.

What?? I’ve been told we have to give the user what they want.

 

[Carnivore]

One way to stop this is to just say 'NO'. If they insist then quote them a $2,500-$3,000 Fee. Explain this amount will pay for a CCG or Business Appraiser to do what they want.

 

[J Grant]

The appraiser can tell a client that they will do the assignment, and also inform the client they intend to use monthly or annual rentals and that they will not use STR.
Maybe the client would agree, maybe not. If the client still insists on STR, then decline the assignment.

A higher fee won't change the fact that since it is on a 1004 form, Fannie/Freddie will not accept the STR, and even if it slides through, the appraisal would be liable because an STR makes it more like a hotel /commercial type use.

If a lender wants to use Air BNB to qualify a borrower's income, that is not our concern. Their income is not our concern; the property valuation is our concern.

 

[shrubberyvaluation]

I just received an order for a 1004 and 1007 and in the 1007 they said they want me to use STR's. Does anybody have any experience/wisdom on how best to accomplish this? I appreciate your time and help.

Don't and probably drop that client if they haven't figured it out by now they are knowlingly trying to get you to do something you shouldnt do.