Appraisal.com Nationwide Appraisal Network: Appraisal
Requirements
Manufactured Home Appraisal - Uniform
Residential Appraisal Report (FNMA 1004)
As a condition of
payment and continued participation, the
following
requirements must be met by all appraisers on
each report produced for the Appraisal.com
Nationwide Appraisal Network. If you have any
questions about these requirements, please
contact the Appraisal.com Appraisal Quality and
Review Department at 716.332.5950 x525 or email
at
support@appraisal.com.
General
(1) The appraisal
report must state the entire three year sales history
of the subject property. This is an Appraisal.com
requirement.
(2)
The report must be USPAP compliant, and meet
minimum requirements set forth by Appraisal.com.
(3) The report must be
produced in a manner that is consistent with all applicable
federal, state and local laws.
(4) The report must be
submitted on a typed or computer-generated (not handwritten)
document that is a reasonable facsimile of the current Fannie
Mae Form 1004 and all pertinent fields must be completed. If
the appraiser chooses to omit any fields, an explanation must
be included.
(5) The report must be
delivered to Appraisal.com as an Adobe Acrobat® PDF document or, if the appraiser is unable to deliver the document as
an Adobe Acrobat PDF document, the report may be delivered by
overnight courier to the Appraisal.com Nationwide Appraisal
Network (620 Main Street, Buffalo, NY 14202). Delivery by
courier shall be at the appraiser's sole expense and will
cause the appraiser to incur a fee
(see the Appraisal.com
Terms of Use) for
Appraisal.com to scan and upload the document as an Adobe
Acrobat PDF document.
(6) The report must
indicate if the site is being utilized for the highest and
best use and, if not, an explanation must be included.
(7) Except in cases
where the cost approach is clearly inappropriate (such as an
antique structure) the cost approach section of the report
must be completed. If the cost approach is not included, an
explanation as to why it has been excluded must be included in
the report.
(8) Unless instructed
otherwise within the order details, the report must name the
company who ordered it as the Client for the report. If
requested to do so by Appraisal.com within 30 days of report
delivery, the appraiser must change the client name to reflect
the correct name. However, if the name change request is due
to a change of investor, the appraiser may charge a fee of up
to $100 to Appraisal.com.
(9) The report must
contain a final opinion of market value.
(10) The report must
contain the effective date of the appraisal.
(11) The report must
comply with any reasonable requests made within the special
instructions section of the appraisal order.
Appraiser(s)
(1) The report must be
produced by the appraiser (or appraisal firm) the appraisal
assignment was sent to. The appraiser who produces the report
(or the supervisory appraiser, if state law allows) must hold
a current and valid state license and/or certification.
(2) The report must
contain the signature as well as the date of signature.
(3) The report must
contain the appraiser's State Certification (or License)
number as well as the expiration date of the State
Certification (or License).
(4) If an apprentice or
assistant produces the report, the supervisory appraiser must
also sign the report and date his or her signature. The
supervisory appraiser must indicate whether or not he or she
has inspected the subject property.
Attachments / Addenda
(1) The report must
contain a sketch of the floor plan of the subject property.
The floor plan must indicate the placement of rooms within the
property (either by the inclusion of interior walls and/or
room names) if the placement of the rooms has any significant
bearing upon the value or marketability of the property (i.e.
functional obsolescence due to poor traffic flow). The sketch
must indicate the exterior building dimensions of the
property, unless the property is a condominium or cooperative
unit, in which case the sketch must indicate the interior
perimeter unit dimensions.
(2) The report must
include a detailed calculation of the gross living area of the
subject property. The calculation of the gross living area
must agree with the information shown on the sketch.
(3) The report must
contain a current street map showing the exact locations of
the subject and comparable properties as well as the location
of any other properties mentioned within the report as
affecting the value of the subject (such as a neighboring
property exhibiting negative characteristics).
(4) The report must
contain an appropriate Statement of Limiting Conditions.
(5) If requested within
the special instruction section of the appraisal order, the
report must include a flood map addendum.
(6) The report must
contain a completed
Manufactured Home Appraisal Report Addendum
(FNMA 1004C).
Photographs
(1) The report must
contain current, clear and well-framed color photographs of
the following:
·
Front of
subject property
·
Rear of
subject property
·
Street
Scene
·
Any
relevant or pertinent items (such as views, orchards, custom
construction features, outbuildings, damage, detrimental
conditions, substandard neighboring properties, obsolete
items, pending construction, etc.) that are described within
the report as affecting the value and/or marketability of the
subject property.
·
Front views
of all comparable sales used within the report
(2)
All photographs of the subject property must have been taken
at time of inspection. Photographs of comparables may be "file
photos" (a "file photo" is any photograph taken from the
appraiser's databases or the databases of a third party, such
as a multiple listing service or appraisers' cooperative), as
long as the appraiser has (a) viewed the comparable property
within the previous 90 days and (b) has disclosed within the
report that the photographs are "file photos".
(3)
All photographs must be in focus and taken with sufficient
lighting so that major and minor details of the property can
be clearly viewed.
(4)
All photographs must be framed in such a way that the subject
of the photograph fits completely into the photograph.
(5)
Photographs may not contain people or any element that may
cause a reader of the appraisal to make assumptions regarding
the racial composition of the neighborhood.
Comparables
(1) Comparable sales
must have actually closed and must be from a verifiable data
source. The source(s) of data for all comparables used within
the report must be disclosed.
(2) Any adjustment(s)
that are in any way subjective (such as views, appeal,
condition, location ratings, etc.) must be clearly explained
in the report.
(3) All adjustments
must be shown within the comparable grid and totaled.
·
Any
individual adjustment that exceeds ±10% of the sale price for
that comparable must be commented to include (a) an
explanation of the adjustment made and (b) necessity for the
use of that comparable.
·
Any total
net adjustment of any comparable that exceeds ±15% of the sale
price for that comparable must be commented to include the
necessity for the use of that comparable.
·
Any gross
adjustment of any comparable that exceeds 25% of the sale
price for that comparable must be commented to include the
necessity for the use of that comparable.
·
Any special
adjustments (such as "upgrades") made by the appraiser that do
not fall within the scope of the predefined adjustments on the
1004 form must be clearly explained within the report.
(4)
The report must indicate the reason(s) why any comparable
located more than one mile from the subject property was
chosen.
(5)
The report must indicate the reason(s) why any comparable sale
that closed more than 6 months prior to/after the effective
date was chosen.
(6)
The report must indicate the reason(s) why any comparable with
a gross living area variance of ±20% was chosen.
(7)
The report must indicate the reason(s) why any comparables
that would seem (to a reviewer of the report) to not be the
most appropriate comparables were chosen.
(8)
Comparables with sales and/or financing concessions should be
avoided whenever possible. However, if the appraiser chooses
to include comparables with sales and/or financing
concessions, a clear explanation of both (a) the concessions
granted and (b) why the comparable was chosen (including the
necessity of its use) must be included.
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