Fannie Mae appraisal forms require which prior sales histories to be reported?
Correct Answer
A) Three years for the subject and twelve months for the comparables
Fannie Mae’s report forms require the three-year prior sales history of the subject and the twelve-month history of the comparable sales.
Why This Is the Correct Answer
Option A is correct because Fannie Mae's appraisal report forms require the appraiser to report the three-year sales history of the subject property and the twelve-month sales history of the comparable sales. The longer look-back on the subject helps reveal flips or unusual prior transfers.
Why the Other Options Are Wrong
Option B: Twelve months for the subject and three years for the comparables
Option B is wrong because it reverses the periods, giving twelve months for the subject and three years for the comparables. The forms call for three years for the subject and twelve months for the comparables.
Option C: Five years for both the subject and the comparables
Option C is wrong because five years for both the subject and the comparables is not the stated requirement. The forms require three years for the subject and twelve months for the comparables.
Option D: Three years for both the subject and the comparables
Option D is wrong because three years for both overstates the comparable requirement. The comparables need a twelve-month history, while three years applies to the subject.
Subject Three, Comps Twelve
The Subject gets the bigger unit, three years; the comps get twelve months.
How to use: Use this pairing to quickly reject any choice that swaps or equalizes the periods.
Exam Tip
Watch for reversed pairings; the subject's look-back is the longer one.
Common Mistakes to Avoid
- -Swapping the subject and comparable periods
- -Using one period for both
- -Forgetting to analyze a prior subject sale that falls within three years
Concept Deep Dive
Analysis
This question tests recall of the prior sales history periods on Fannie Mae appraisal report forms. The subject and the comparables have different look-back periods. The candidate must match the longer period to the subject and the shorter one to the comparables.
Background Knowledge
Prior sales history helps the appraiser spot rapid resales, unusual price changes, and other issues that affect reliability. The subject receives a longer look-back because its value is the focus of the assignment. The comparable history is shorter but still helps confirm that each sale is a reliable indicator.
Real-World Application
While researching a subject, an appraiser finds it sold 26 months ago at a much lower price. Because that sale falls within the three-year subject look-back, she reports and analyzes it. For each comparable she checks transfers within the prior twelve months.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
Using GLA $36/sf and non-market financing $10,000: a 3,100 sf comparable sold for $277,000 with non-market financing; the subject has 2,800 sf. Bath count differences are not adjusted. What is the adjusted price?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
In a neighborhood with declining values and marketing times over six months, what must Fannie Mae lenders confirm about the sales comparison analysis?
A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
According to the Interagency Appraisal and Evaluation Guidelines, which items should an appraisal’s market conditions discussion include?
A comparable listed at $420,000 and sold for $399,000. What sale-to-list price ratio (sale price ÷ list price) does this indicate?
An appraiser wants to describe the neighborhood boundaries in a Fannie Mae report. Which approach is acceptable?
Which of these is listed by Fannie Mae as a sales or financing concession?
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