The real estate agent in the subject transaction supplies the appraiser with comparable sales data. What does Fannie Mae require?
Correct Answer
B) The information must be verified through another disinterested source
If the subject’s real estate agent provides comparable sales data, that information must be verified through another disinterested source.
Why This Is the Correct Answer
Option B is correct because Fannie Mae requires that comparable sales data supplied by the subject's real estate agent be verified through another disinterested source. The agent has an interest in the transaction, so independent confirmation protects the credibility of the data.
Why the Other Options Are Wrong
Option A: The data may be used as is, since the agent is a licensed professional
Option A, using the data as is because the agent is licensed, ignores the agent's interest in the transaction. Licensing does not remove the need for independent verification.
Option C: The data must be excluded from the appraisal report and the workfile
Option C, excluding the data from the report and workfile, goes too far. The data can be used once verified, and records of what was received and relied on belong in the workfile.
Option D: The agent must sign the appraisal certification as an assistant
Option D, having the agent sign the appraisal certification as an assistant, misunderstands the certification. Supplying data does not make the agent an appraisal assistant, and the requirement is verification, not a signature.
Interested source, independent check
If the data comes from someone who gains from the deal, confirm it with someone who does not.
How to use: Use this when a question involves data from the subject's agent, buyer or seller.
Exam Tip
Look for the answer that keeps the data but requires verification through a disinterested source.
Common Mistakes to Avoid
- -Trusting agent-supplied data because the agent is licensed
- -Discarding agent-supplied data entirely
- -Confusing data sources with appraisal assistants
Concept Deep Dive
Analysis
This question tests Fannie Mae's requirement for comparable data supplied by an interested party. The subject's real estate agent has a stake in the transaction. Data from that source must be verified through another disinterested source.
Background Knowledge
Appraisers may receive data from many sources, including parties to the transaction. Information from interested parties can be biased, so it should be confirmed through a source that has no stake in the outcome.
Real-World Application
The listing agent emails the appraiser three recent sales supporting the contract price. The appraiser confirms each sale's price and terms through MLS records and public data before using them.
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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A comparable sold for $520,000. A seller concession cost $15,000, but verified market evidence attributes only $8,000 of the price to it. What cash-equivalent price results?