Colorado 
Association of Real Estate Appraisers

CAREA General Meeting 5-18-2011

Full house today. Over 100 attendees are here tonight. CAREA sent out postcards and from the mailing we have eight new members. NCAREA has opened their organization to allow CAREA members to get CE from attending NCAREA meetings. We have decided to allow NCAREA members to be affiliate members and get CE from attending our meetings.

CCA update: Just held a symposium. CCA also offered an opinion on senate bill on private transfer fees. The bill passed and is now on to the governor.

The new venue-Embassey Suites- has been selected as Academy Hotel had raised our cost for meals from $20 to $25 per person. By a show of hands the new venue is approved.

New Regression Analysis program is being designed. The program will allow Excel to search for key words and help to evaluate data.

REPORT WRITING:

Uniform Appraisal Dataset (UAD) is rolling out in September. It will be required on most residential single family appraisal reports. Will include standardized responses and drop-down lists. There are nice fannie mae tutorials on the FNMA website.

Compliance

What does USPAP want? Are work should be credible or worthy of belief. They require support by evidence and logic. We should be summarizing our data used for analysis and our methods used. What is a adequate summary. Disclosure of research and analysis. Report on your analysis.

Lets look at the URAR section by section starting with the subject section. This area is fairly cut and dry. One area commonly mistaken is the history of the listings of the subject. All listings within the past 12 months must be analyzed and disclosed. UAD will require the parcel format to be the same as the taxing authority.

Next is the neighborhood section. UAD will require specific boundaries using N S E W. We are not sure if there is a specific format that the system will want. This answer will reveal itself. It should be done using the descriptions in a clockwise format ie N E S W. Neighborhood description should include housing styles, ages, styles, employment information, appeal of neighborhood, convenience to shopping, schools, etc.

Market conditions are next. No UAD requirements for this section. However, all survey respondants indicated commentary was very important to explain data and analysis

Site section is next. Verify your zoning, do not use generic descriptions. UAD requirements for site size are: anything under one acre needs to be recorded in whole number square feet. Anything over one acre must be reported in acreage up to decimal points. AC= acre SQ= square feet. The view will be a drop down list. You are required to choose from the drop down menus.

Improvement section is next. The narrative must provide a clear, detailed and accurate description that is adequate based on the level of field review. Includes quality, construction, lay-out etc. UAD has specific requirements. They include choosing a overall condition from a drop down menu. Also need to select level completed within a certain time frame. All from drop down lists. The narrative should lend support to the UAD rating.

Sales comparison grid is next. UAD requires selections from the drop down menus for lines 1 and 2. There are many many standaridised menus and appraisers should check out the tutorial on FNMA to see all the drop downs. Must have two dates in the grid, one is the contract date, one is the sold date. The comparable sales have the same options in drop downs as the subject for site, view, quality of construction, condition. Bathroom count is different, full baths on the left side of the decimal and half baths on the right. If no basement, enter 0 (zero). Much more information required on basement rooms. First line must include basement sq’ and basement finish sq’. Second line must tell what rooms are located in the basement. Prior sale/transfer section must include sales AND TRANSFERS. This is per FNMA even though USPAP just requires sales. Make sure to analyze the prior sales/transfers. UAD wants only one sale or transfer in the box. Any additional information must be recoreded in the narrative section. Only report sales or transfers having happened within the time frames that are requested. No need to go beyond 12 months.

Nothing in the UAD applies to the Cost Approach. FNMA does not require the cost approach. Any exclusion of any approach should be thoroughtly explained. If the approach to value is deemed necessary, do it. If not, explain why it is not necessary. If the approach can be deemed credible, it should be evaluated and included in the report.

Income approach is treated like the cost approach and UAD does not require specifics related to this approach.

 


© Colorado Association of Real Estate Appraisers
Powered by Wild Apricot Membership Software