Which three categories are used to report the supply of properties in a Fannie Mae neighborhood section?
Correct Answer
B) Shortage, in-balance or over-supply
Supply is reported as shortage, in-balance or over-supply. Increasing, stable or declining describes the trend of values, and the month categories describe marketing time.
Why This Is the Correct Answer
Option B is correct because Fannie Mae has the supply of properties in the subject neighborhood reported as shortage, in-balance or over-supply. These categories describe how available housing compares with demand.
Why the Other Options Are Wrong
Option A: Increasing, stable or declining
Option A, increasing, stable or declining, is wrong because those categories describe the trend of property values, not supply.
Option C: Under three, three to six, or over six months
Option C, under three, three to six, or over six months, is wrong because those categories describe marketing time for properties, not supply.
Option D: Urban, suburban or rural
Option D, urban, suburban or rural, is wrong because those categories describe the neighborhood's location type, not the supply of properties.
Values trend, supply balances, time counts
Values trend up or down, supply is about balance (shortage to over-supply), and marketing time counts months.
How to use: Use this three-way sort to match each neighborhood item with its category set.
Exam Tip
These questions often swap the category sets among value trend, supply and marketing time, so tie each set to its own item before answering.
Common Mistakes to Avoid
- -Using increasing, stable or declining to describe supply
- -Mixing up the marketing time month ranges with supply
- -Checking boxes that conflict with the market data in the report
Concept Deep Dive
Analysis
This question tests the reporting categories in the neighborhood section of a Fannie Mae appraisal report. Three separate items each have their own three-choice scale: trend of property values, supply of properties and marketing time. The task is to match the supply item to its correct scale.
Background Knowledge
The neighborhood section of a residential appraisal report summarizes market conditions using standardized checkboxes. Property values are reported as increasing, stable or declining; supply as shortage, in-balance or over-supply; and marketing time as under three, three to six, or over six months. The appraiser's selections should be consistent with the market data and commentary in the report.
Real-World Application
An appraiser finds very few homes for sale in a neighborhood where buyers are competing for listings. In the neighborhood section, the appraiser marks supply as shortage and checks that the value trend and marketing time boxes agree with the same market data.
More Market Questions
In market area analysis, what characteristic distinguishes a district from a neighborhood?
Under USPAP Standards Rule 1-3(a), which item must an appraiser identify and analyze when necessary for credible results in a market value assignment?
How does the Fannie Mae Selling Guide define a neighborhood?
Several homes in a neighborhood are vacant and boarded up. Which market force does Fannie Mae classify this as?
Infrastructure investment such as a new interchange typically affects nearby land by:
A city raises property tax rates and tightens building regulations. Which market force does Fannie Mae classify these as?
An appraiser believes, without market evidence, that a nearby group home lowers values. What does Fannie Mae require?
An appraiser is asked for a retrospective value opinion as of three years ago. When must the appraiser meet the Competency Rule?
Can mixed land uses in a residential neighborhood ever enhance home values, according to Fannie Mae?
In Mueller’s occupancy-based four-phase real-estate cycle framework, which phase describes falling occupancy as continuing supply growth overtakes demand?
People Also Study
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam