Welcome to the new 1004

[George Hatch]

When compared to the existing 1004, the difference in appraiser competency in the form design is apparent. By which I am not referring to the level of detail in these various sections, but rather to the sequencing and inclusion of additional topics not previously covered in the existing 1004. Obviously designed by appraisers, not bankers.

One aspect I don't like is that I don't see a separate Neighborhood analysis, which would normally be in front of the site analysis. The form goes straight from assignment information directly to site analysis. Sometimes the subject's market area is a portion of the neighborhood or covers multiple neighborhoods. You might have enough data to power a statistical analysis of the overall pricing trends for the neighborhood but not for the subject's market area. Or the two might be showing different trends.

Also, if your subject is atypical for the neighborhood or fits in at one end or another in the value range that won't be apparent without having a neighborhood analysis that covers everything that's happening in proximity to the subject.


Appraisers are going to be looking for a lot more information during their inspections. I kinda doubt most appraisers will be able to do an inspection without a worksheet or app that covers all these elements. I'm thinking that additional narrative addenda might not be necessary for most assignments, so that's one less variable for reviewers to hassle with.

Also, the appraisalware vendors are going to run buck wyld with the pricing of their packages over this change. A couple of them might not even make the transition.

 

[alebrewer]

JG should appreciate the fee being broken out between appraiser and AMC...

 

[Lil Rhody]

I’m still wondering what qualifies as modernization

It depends on who is introducing the "modernization." I wonder if increased time spent by the appraiser to facilitate ease of data mining to feed an AVM is considered modernization.

 

[alebrewer]

When compared to the existing 1004, the difference in appraiser competency in the form design is apparent. By which I am not referring to the level of detail in these various sections. Obviously designed by appraisers, not bankers.

One aspect I don't like is that I don't see a separate Neighborhood analysis, which would normally be in front of the site analysis. The form goes straight from assignment information directly to site analysis. Sometimes the subject's market area is a portion of the neighborhood or covers multiple neighborhoods. You might have enough data to power a statistical analysis of the overall pricing trends for the neighborhood but not for the subject's market area. Or the two might be showing different trends.

Also, if your subject is atypical for the neighborhood or fits in at one end or another in the value range that won't be apparent without having a neighborhood analysis that covers everything that's happening in proximity to the subject.


Appraisers are going to be looking for a lot more information. I kinda doubt most appraisers will be able to do an inspection without a worksheet or app that covers all these elements. I'm thinking that additional narrative addenda might not be necessary for most assignments, so that's one less variable for reviewers to hassle with.

Also, the appraisalware vendors are going to run buck wyld with the pricing of their packages over this change. A couple of them might not even make the transition.

My guess is that this disappeared because many users don't understand the difference between neighborhood and market, and it's more clear (in their eyes) to just stick to 'market' instead of trying to include both.

 

[Mike Ault]

Window surface area? I used to draw nice floor plans with all the windows included however it was always in two dimensions and never suitable for calculating "window surface area". I hope they are looking for a "qualitative" entry there and not a numerical one…

 

[George Hatch]

My guess is that this disappeared because many users don't understand the difference between neighborhood and market, and it's more clear (in their eyes) to just stick to 'market' instead of trying to include both.

I suppose that if I had to choose between one vs the other than "market area" is the more important.

I quite like the inclusion of comment field for "search criteria description" because a well written summary on that can be used to blow off all the sales someone might submit in an ROV which aren't as similar as the sales in the SC.

"The search criteria description in the Market analysis outlines the parameters used to select for "most similar". Sales which don't meet these criteria cannot be considered more similar to the subject attributes than the sales presented in the SC."​

Copy/paste that one in any rebuttal to an ROV which consists of dissimilar comps and you're done. No need for the line-by-line. Heck, the user now has the info it takes to reject the ROV on their own without even bothering the appraiser with it.

 

[Terrel L. Shields]

As for length, the typical overall report length will change very little from what it is today.

So, in what format is it saved for record keeping? Can you make a pdf even?

 

[alebrewer]

I suppose that if I had to choose between one vs the other than "market area" is the more important.

Agreed. It should have been broken out all along, but I guess the original developers determined there wasn't any difference between market and neighborhood in residential assignments. They would have been wrong, but nonetheless...

 

[CGinMN]

Window surface area? I used to draw nice floor plans with all the windows included however it was always in two dimensions and never suitable for calculating "window surface area". I hope they are looking for a "qualitative" entry there and not a numerical one…

Maybe for when the data collection apps are used.

 

[DWiley]

Can you make a pdf even?

Yes. Sample reports in PDF format are posted on the GSEs' web sites.