For a Fannie Mae assignment using the legacy B4-1.3-03 neighborhood format, independent current market analysis supports marketing time of about 3.7 months. Which category applies, and what analysis is required if supported marketing time exceeds six months?
Correct Answer
D) Three to six months; over six months requires stated reasons
Under the stated legacy reporting format, a supported approximately 3.7-month marketing-time conclusion belongs in the three-to-six-month category. If supported marketing time exceeds six months, the Guide requires conclusions explaining the reasons and attention to relevant listings, contracts and concessions. MOI or historical DOM alone does not mechanically establish that conclusion.
Why This Is the Correct Answer
Option D is correct because 3.7 months falls in the three-to-six-month category under the format's choices of under three months, three to six months, or over six months. Fannie Mae requires the appraiser to provide conclusions for the reasons a neighborhood is experiencing marketing times over six months. The marketing-time conclusion should rest on supported current market analysis rather than a single statistic applied mechanically.
Why the Other Options Are Wrong
Option A: Under three months, and no supporting analysis is needed at all
Option A, under three months with no supporting analysis needed, places 3.7 months in the wrong category and ignores that the conclusion must be supported.
Option B: No category may ever be selected for this kind of assignment
Option B, no category may ever be selected, is wrong because the legacy format provides three marketing-time categories, and one must be chosen based on the supported analysis.
Option C: Under three months, since that is the typical category
Option C, under three months because that is the typical category, picks a category by habit rather than by the supported 3.7-month finding, which exceeds three months.
Over six needs a why
Under three, three to six, over six; over six months requires the appraiser to explain why.
How to use: Use this to place a marketing time in its category and recall the extra reporting duty.
Exam Tip
Place the given number in its category first, then check what reporting duty applies for the longer category.
Common Mistakes to Avoid
- -Choosing a category by habit instead of by the data
- -Omitting the explanation for marketing times over six months
- -Relying on one statistic without supporting analysis
Concept Deep Dive
Analysis
This question tests placing a supported marketing time into the correct legacy neighborhood category and knowing what Fannie Mae requires for longer marketing times. The categories are under three months, three to six months, or over six months. A supported 3.7-month marketing time falls in the three-to-six-month category, and marketing times over six months require the appraiser's stated conclusions about the reasons.
Background Knowledge
Fannie Mae neighborhood reporting includes marketing-time categories along with property value and demand-supply trends. When conditions show declining values, over-supply or marketing times over six months, the appraiser must explain the reasons. Marketing time should reflect supported analysis of the subject's competitive market.
Real-World Application
An appraiser's analysis of competing listings and recent contracts supports a marketing time of about four months. The appraiser checks three to six months; in another assignment showing nine months, the appraiser explains the causes, such as excess listings.
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