Ch 9 Flashcards
What exhibits are required with a 1004 Appraisal?
Building Sketch and Calculations
Street Map
Exterior Photographs
Interior Photographs
When is a floor plan required?
When the floor plan (incl interior walls) is atypical or functionally obsolete.
Acceptable photographs include:
Original images
electronic images
copies from MLS
copies from appraiser files
At a minimum, the report must include interior photos of the following:
Kitchen
all bathrooms
main living area
examples of physical deterioration
examples of recent updates
What exhibits are required for a 1004D Appraisal
Photo of the front of the subject
When is the 1007 required?
1007 = Single Family Comparable Rent Schedule
This form is required if the property is a one-unit investment property and the borrower is using rental income to qualify.
The Uniform Residential Appraisal Report (URAR) form is designed to report…
“This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project.”
Net adjustment is defined as:
“The sum of the positive and negative adjustments made to a comparable sale price.”
(Plus and Minus can offset each other)
A gross adjustment is defined as:
“The total adjustment to each comparable sale price calculated by adding the absolute values of all positive and negative adjustments.”
(This is the better indicator, only PLUS)
____ does not require a sales history of the comparable sales; but when completing the ____ for lending purposes, the form requires a ___-year sale history of each comparable sale. Please note that it is for one ___ prior to the date of ____ of the comparable, not ___ year prior to the _____ date of the appraisal.
USPAP does not require a sales history of the comparable sales; but when completing the URAR for lending purposes, the form requires a one-year sale history of each comparable sale. Please note that it is for one year prior to the date of sale of the comparable, not one year prior to the effective date of the appraisal.
Calculate the absorption rate. If there were 60 sales during a 6 month period.
The absorption rate is 10 sales per month (60/6).
60 sales = 6 months
X = 1 month
Calculate the months of housing supply if there are 240 active listings and 60 sales during a 6 month period.
The absorption rate is 10 sales per month (60/6). There is a 24-month supply of homes on the market (240 active sales/10 sales per month). This may support the appraiser’s conclusion that there is an over-supply of homes on the market.
The appraiser must report the date(s) of prior sale(s) or transfer(s) of the subject property for the xx years prior to the xx date of the appraisal.
3
effective
The appraiser must report the date(s) of the prior sale(s) or transfer(s) of any comparable property during the xx xx prior to its xx xx xx.
twelve months prior to its date of sale
Reporting Format for prior sale:
mm/dd/yyyy
