What Do You Consider To Be Data Sources And Verification Sources?

[djd09]

If you own Fannie Mae, then that would matter. But you don't, therefore appraisers have to go by FNMA rules and interpretations.

yeah. Who owns Fannie Mae?

Some posters have a lot of faith in Realtors. Of course they will tell the truth. Hearsay is weak evidence.

 

[residentialguy]

yeah. Who owns Fannie Mae?

Some posters have a lot of faith in Realtors. Of course they will tell the truth. Hearsay is weak evidence.

Revised that post so not to muddy the waters
Information coming from the immediate party that was it was involved in, is not hearsay.

 

[djd09]

No revision necessary. Who owns fannie?

 

[ucbruin]

Last time I looked there was one USPAP, not one for commercial and the other for residential.

The 1004 report asks for a data source(s) which in UAD world is the MLS number although that could be different in some areas. Then the 1004 form, the next line asks for the Verification Source.

What do you consider to be a Data Source and what do you consider to be a legitimate Verification Source?

Do assessor records count as Data Sources, Verification Sources or maybe both in some instances?

Are assessor records enough as a verification source to abide by Standard 1-4 for the typical residential assignment in your opinion?

So you think that verification with only public records is enough?

"The 1004 report asks for a data source(s) which in UAD world is the MLS number although that could be different in some areas. Then the 1004 form, the next line asks for the Verification Source."

1. I thought you wanted to discuss residential/1004 form. I apologize for having read and mis-interpreting your opening post....

2. The reason I commented on commercial vs residential had to do with the difference between the number of potential/actual comps per subject property, especially with your opinion regarding coverage areas (30 miles and 1.5 counties). I imagine, a majority of AF members, are residential appraisers working in largely urban areas of high population density therefore, much more sales data to "verify" than the appraiser performing an appraisal for a gas station or some other specialty property. How many gas stations have sold within the past 1-12 months in your 1.5 counties/30 miles coverage area? I can recall a time when I was appraising a 1 bedroom apt style condo in Santa Ana, CA, there were probably 50-100 sales of similar type units within the subject's neighborhood. Yeah commercial and residential are the same....

 

[Terrel L. Shields]

there were probably 50-100 sales of similar type units

Quantity has a quality of its own. That is why stats works well in such areas. Outside that not so much. In statistics there is a problem with small data sets. If you take a known set of say 10 numbers. And you use a random number generator and compare the two, there will be some "correlation" according to the numbers...i.e. - R Square is NOT zero. Run that again same 20 times, and you may see wild swings from - 30% to +60% "correlation". Of course, there is no correlation because it is a randomly generated number.

The same applies to any small data set (e.g.- rural property, a small town, W. Kansas). The potential exists that the few (small sample) sales in an area where the total population (all property) is low, the potential exists that the samples are dissimilar to a single isolated "subject" and another such sized sample may be significantly different. The implication is that any adjustment is equally exposed to being misjudged based upon a small data set.

The premise of Fannie Mae is that we are all one big happy generic middle of the road property within a narrow range of value. That's their story and they are sticking to it.

 

[residentialguy]

No revision necessary. Who owns fannie?

What does that have to do with anything? You accept the order with fannie requirements attached to it, it doesn't matter if Santa Claus owns them. You have to fulfill the requirements or pass on the order.

 

[TRESinc]

What does that have to do with anything? You accept the order with fannie requirements attached to it, it doesn't matter if Santa Claus owns them. You have to fulfill the requirements or pass on the order.

you forget that djd appraises in a bubble and does not get assignment conditions from any of his clients. he does not like FNMA, or where they are located, so he does not have to abide by their requirements either.

 

[residentialguy]

 

[djd09]

Yes Fannie needs you to verify. Just like they did when purchasing MBS in the boom. comical.

Should the appraiser who makes adjustments for rotting decks give advice?

 

[residentialguy]

Yes Fannie needs you to verify

Thank you. End of story