Which of these does Fannie Mae give as an example of a verification source for a comparable sale, as distinct from a data source?
Correct Answer
D) The comparable’s buyer or seller
Data sources include an MLS, deed records, tax records and similar sources. Verification sources include the buyer, seller, listing agent, selling agent, and in certain situations closing documents.
Why This Is the Correct Answer
Option D is correct because Fannie Mae lists the buyer, seller, listing agent, selling agent and, in certain situations, closing documents as examples of verification sources. A comparable's buyer or seller has direct knowledge of the transaction and can confirm its terms.
Why the Other Options Are Wrong
Option A: The multiple listing service
Option A, the multiple listing service, is a data source under Fannie Mae's framework. It supplies sale information but is not listed as a verification source.
Option B: The county's public deed records
Option B, the county's public deed records, is a data source. Deed records report the transfer but are not among Fannie Mae's examples of verification sources.
Option C: The county assessor's tax records
Option C, the county assessor's tax records, is a data source. Tax records provide property and sale data but are not a verification source in Fannie Mae's examples.
Records report, people confirm
Databases and public records report the sale; the people involved, their agents, or closing documents confirm it.
How to use: Use this when sorting a listed source into data source or verification source.
Exam Tip
When asked for a verification source, look for a party to the transaction, an agent in the deal, or closing documents rather than a database or public record.
Common Mistakes to Avoid
- -Listing the MLS as the verification source
- -Treating deed or tax records as verification sources
- -Using the same source for both data and verification
Concept Deep Dive
Analysis
This question tests Fannie Mae's distinction between data sources and verification sources for comparable sales. Data sources supply the basic sale information, while verification sources are parties or documents that can confirm the details of the transaction.
Background Knowledge
Fannie Mae expects appraisers to report both a data source and a verification source for each comparable sale. Data sources such as the MLS, deed records and tax records provide the information, while verification sources such as the parties, their agents and closing documents confirm it. Using a second, independent source helps confirm price, terms and conditions of sale.
Real-World Application
An appraiser finds a comparable sale in the MLS and then calls the selling agent to confirm the price, concessions and conditions of sale. The report lists the MLS as the data source and the selling agent as the verification source.
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?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam
Previous Question
Two separate comparables each have only one supported signed adjustment:the first+$18,000, the second −$22,500. Which net/gross statement is correct?
Next Question
In a neighborhood where many homes are rented, an appraiser is valuing a house with central air conditioning. Two similar homes sold recently while rented: one for $360,000 (listed at $370,000) with rent of $2,000 per month, and one for $387,000 (listed at $397,750) with rent of $2,150 per month. Leases of otherwise similar homes show rent of $2,050 per month with central air and $1,975 without. Comparable 2, an otherwise similar sale, has no central air, and a contractor quotes $9,800 to install a system. What adjustment should be made to Comparable 2 for central air?