Fannie Mae has introduced the addendum 1004MC and is requiring its use beginning April 1, 2009 (view the form at Efanniemae.com). It is a worksheet to help appraisers perform a market conditions analysis (MCA). By the time this hits your desk you should have begun the process of becoming familiar with it. Here…
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I decided to make the switch from appraising commercial properties back to residential properties in early 2008. To many this is appraisal suicide. However, the reason is simple- my wife became a state-registered trainee a few years ago, is serious about becoming Certified and needed my mentoring.
Since her knowledge of commercial appraising is limited,…
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Editor’s Note: Appraiser Bryan Reynolds shows you one way to stand out from the pack in the minds of your clients: by sharpening your professional skills and thinking outside the checkbox. Thinking Outside the Check Box by Bryan S. Reynolds, AQB Certified USPAP Instructor Appraisers have had blinders on for way too long. It is time...…
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This article is about common mistakes in appraisal reports, whether the appraisal is for a mortgage transaction or other intended use. Most mistakes are not violations of USPAP but errors caused by a lack of common sense, trying to satisfy a client or not following Fannie Mae guidelines.
After reviewing countless appraisal reports, I noticed a…
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Historically, the relocation industry has been challenged by such environmental issues as UFFI (urea formaldehyde foam insulation), asbestos, radon gas, synthetic stucco, and black mold. Currently, the industry is challenged economically by an oversupply of homes, decreasing home prices, a credit crisis, an unstable stock market, record foreclosures, and a global recession. What is next?…
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When sales activity has diminished, as is the case in today’s market, appraisers have a much smaller pool of comparable transactions available to them. Such times require that appraisers give greater scrutiny to transactions that have traditionally been discarded.
Here’s why and how appraisers are reconsidering foreclosures, short sales and listings in an upside down market.
Foreclosures
A…
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Expectations have changed considerably over the past few years. An appraiser who was considered to be the best and at the top of their game a few years ago can find themselves lost and confused in today’s market. Clients want more information and they want it in less time and sometimes for less money. Learning…
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You can have the latest map program, aerials and any other special effects to make your report look as attractive and professional as possible but if you choose the wrong comparables, your result will be the worst appraisal report possible. This article shows the best way to choose comps, especially when sales of properties are…
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My last article discussed choosing comparable sales in a tough market. As was discussed in that article, in today’s market, it is very difficult to obtain comparable sales and listings that best reflect comparison to the subject. Some sales and/or listings might be older but more similar to the subject; others may be…
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If you are appraising an environmentally contaminated property, you may need to consider more than just the cost of remediation (cost to cure). The property may suffer from stigma associated with the contamination. Stigmatized properties can take months and even years to recover from a blighted image.
The Uniform Standards of Professional Appraisal (USPAP) describe stigma…
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