Standardized Property Measuring Guidelines

[jay trotta]

Yes, I understand what your saying about USPAP in general for all types of assignments.

This thread is about FNMA, ANSI, and the Reporting Format

Here is what I am referring to:

FNMA 1004
STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS

2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. The sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination of its size.

My last five reports have all been FHA. Four of them have been in Rural Areas(as determined by using USDA Eligible. Website Address search)

I thought about this some more and realized that another Client Type i.e Hard Money Lenders One Hard Money Lender that I have a very good relationship with does not care what format I use. This lender scaped an AMC because the AMC had told him wrongly that we appraisers HAD to use the FNMA formats. In my conversation with him I made it very clear to him that this was nonsense. After talking with him about the charlotte region, he ended the conversation by instructing me to use the format I thought would best suit his needs and the individual assignment. That was easy and he is very pleased.

This upcoming change by FNMA does not apply to them including VA Loans.
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OOOPS Unless the Lender includes that ANSI Requirement as part of the FHA/USDA Assignment. Which happened to me on my last FHA assignment. The LOE was changed by adding that requirement, What I think may have happened is the AMC added that in possibly. I will call them this week to get it clarified. Either way doesn't matter because I have been using ANSI all along anyway.

And therein lies the "rub"...over the past 30 years or more the "sketch page" has been noted as an Exhibit page, nothing more nothing less. Does it also mean that all the data gathering over the past 10-50 years is inaccurate? Not useable for comparison? How does this relate to Their Review from their Big Data Machine?

 

[Carnivore]

The NC Real Estate Commission has 'rules' about how Realtors are supposed to measure and report square footage however, there has never been much in the way of enforcement.

Yes thats kinda true Except that what your referring to is not absolute, it is strongly recommended and they do include the words "SHOULD"

Introduction
Although real estate agents are not required by the Real Estate License Law or Real Estate Commission rules to report the square footage of properties offered for sale (or rent), when they do report square footage, it is essential that the information they give prospective purchasers (or tenants) be accurate. At a minimum, information concerning square footage should include the amount of living area in the dwelling. The following guidelines and accompanying illustrations are designed to assist real estate brokers in measuring, calculating and reporting (both orally and in writing) the living area contained in detached and attached single-family residential buildings. When reporting square footage, real estate agents should carefully follow these Guidelines or any other standards that are comparable to them, including those approved by the American National Standards Institute, Inc. (ANSI) which are recognized by the North Carolina Real Estate Commission as comparable standards.* Agents should be prepared to identify, when requested, the standard used.


https://www.ncrec.gov/Brochures/Measurement booklet 2013.pdf

 

[Carnivore]

This is interesting... https://www.rocketmortgage.com/learn/fair-market-value.

Read what they say and you will see what I mean

Fair Market Value (FMV) Meaning​

Fair market value (FMV) in real estate is the determined price that a property will sell for in an open market. The FMV is agreed upon between a willing buyer and seller, both of whom are reasonably knowledgeable about the property in question.

To determine what fair market value is, it’s better to first look at what FMV isn’t: fair market value isn’t what you (the buyer or the seller) think the value is, it’s not necessarily the appraised price, and it also isn’t the tax value.

 

[Elliott]

The big syntax error is her use of "determine" when she should have known FMV is an estimate based on the appraiser's supported, credible opinion of value.

 

[RustyTapeMeasure]

Wow, have not been on site for a few months -1,000+ replies for a single post, sheesh. Also have not read in to the details on the upcoming requirements , I am sure it's as clown show just as much as the rest of our profession has become. So we are to use our ANSI numbers and make adjustments to comparables who numbers may or may not be ANSI ? Does ANSI ask us to report the sq footage in an exact amount of say 1258.149 sq ft? haha.

 

[shrubberyvaluation]

This was an example I found from the MLS listing. Now it would not be hard to modify that sketch to ANSIView attachment 58963View attachment 58964

Is the "upper floor" really 6 inches wider than the "lower floor. " hard to tell the picture. I don't typically see that in my area with split levels. More likely it is an interior measurement as the walls are typically 3 inches or so thicker in the basement on each side.

 

[shrubberyvaluation]

This is interesting... https://www.rocketmortgage.com/learn/fair-market-value.

Read what they say and you will see what I mean

Fair Market Value (FMV) Meaning​

Fair market value (FMV) in real estate is the determined price that a property will sell for in an open market. The FMV is agreed upon between a willing buyer and seller, both of whom are reasonably knowledgeable about the property in question.

To determine what fair market value is, it’s better to first look at what FMV isn’t: fair market value isn’t what you (the buyer or the seller) think the value is, it’s not necessarily the appraised price, and it also isn’t the tax value.

So how does FMV differ from MV? They just added in fair to make it sound different?

 

[RustyTapeMeasure]

ANSI ANSI ANSI But it is not required for desktop appraisals ?? Just recommended ( or their wording "encouraged" ) ? wth? Why not? From the Question section of the Fannie guide.

 

[jay trotta]

This is interesting... https://www.rocketmortgage.com/learn/fair-market-value.

Read what they say and you will see what I mean

Fair Market Value (FMV) Meaning​

Fair market value (FMV) in real estate is the determined price that a property will sell for in an open market. The FMV is agreed upon between a willing buyer and seller, both of whom are reasonably knowledgeable about the property in question.

To determine what fair market value is, it’s better to first look at what FMV isn’t: fair market value isn’t what you (the buyer or the seller) think the value is, it’s not necessarily the appraised price, and it also isn’t the tax value.

appears to be very confused as to what & how FMV is determined ?

 

[RCA]

It’s the EXPECTED value a property will sell for in an open market. “expected” in the mathematical or statistical sense. That is to say, based on the typical buyers and sellers, regardless of their knowledge. That is the reality. Why? - Who are you to assess what reasonable and knowledgeable is? We pull real sales out of the MLS for comparison without knowledge of what is going on in their heads. We can take averages - that is all. And those averages take in all kinds of people, many of whom are consumed with hysterical beliefs and emotions.

Of course don’t rely on my definition for passing an exam of fake knowledge.