Under Fannie Mae's Selling Guide, an appraiser finds that the uniqueness of the subject property calls for more explanation of the valuation than the report form's sections allow. What should the appraiser do?
Correct Answer
C) Provide additional supporting data in an addendum to the report form
Fannie Mae's forms are designed for a concise, adequately supported opinion, and when uniqueness or another condition calls for more information, the appraiser should provide additional supporting data in an addendum. Omitting needed support, replacing the final value with a range, or reflexively relying on cost do not meet that guidance.
Why This Is the Correct Answer
Option C is correct because the Selling Guide says that when the uniqueness of the property or some other condition calls for more information, the appraiser should provide additional supporting data in an addendum to the appraisal report form.
Why the Other Options Are Wrong
Option A: Omit the extra discussion, since the form fixes the content of the report
Option A omits the extra discussion because the form fixes the report's content. Fannie Mae expects the appraiser to add supporting data in an addendum when the form's sections are not enough.
Option B: Report a range of values in place of a final value opinion
Option B reports a range instead of a final value opinion. Fannie Mae's Reconciliation section calls for a final value opinion, and a reporting limitation is solved with an addendum, not by changing the form of the conclusion.
Option D: Give the cost approach full weight, since a unique property lacks sales
Option D gives the cost approach full weight because a unique property lacks sales. The problem is reporting space, not a weighting question, and weighting should follow the reliability of the data actually available.
Form too small, add pages
When the form cannot hold the explanation, the explanation goes in an addendum. The analysis is not trimmed to fit the boxes.
How to use: Use this when a question asks how to report extra support for an unusual property on a form report.
Exam Tip
Answers that leave out needed support to fit a form are weak; look for the option that adds support through an addendum.
Common Mistakes to Avoid
- -Leaving out needed explanation because the form has limited space
- -Changing the valuation method to solve a reporting problem
- -Assuming unique properties call for full weight on one approach
Concept Deep Dive
Analysis
The question tests how reporting works when a form report is too concise for the support a unique property needs. Fannie Mae's answer is an addendum, which keeps the form while adding the explanation. The distractors either drop needed support or change the valuation itself rather than the reporting.
Background Knowledge
Form reports present valuation results concisely, which suits typical properties. When a property's features or market conditions require more support, an addendum carries the added data and reasoning so the reader can follow the conclusion.
Real-World Application
An appraiser values a house with an unusual earth-sheltered design on a standard form. She attaches an addendum describing the limited comparable data, the adjustments used and why sales comparison still received the most weight.
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