Baton Rouge Real Estate Appraisers William D. Cobb Explains The Fannie Mae 1004 Form

    /24-7PressRelease/ - BATON ROUGE, LA, May 18, 2007 - INTRODUCTION
When purchasing a home or refinancing a mortgage, the primary appraisal form used in the transaction is the Fannie Mae 1004. The purpose of this article is to describe the form and what the appraiser fills out within this six (6) page form. Three (3) of the pages, pages 4-6, are already filled out by Fannie Mae and contain verbiage regarding Definitions and 25 Appraiser Certifications.

PAGE 1:
SUBJECT PROPERTY
In this section, the appraiser states the exact location of the property by giving the address, including the county, the legal description, neighborhood name, and a map reference. The appraiser also gives information about the real estate taxes, special assessments, and any other fees that pertain to the subject property. The lender/client name and address is given, along with the name of the borrower, owner, and occupant.

CONTRACT
If the appraisal is for a purchase transaction, there will be a sales contract. The appraiser will obtain a copy of this contract, and note in this section whether or not they have analyzed the contract and explain their results or give reason why the contract was not analyzed. They will then fill in the contract price and contract date. The appraiser must also prove that the seller is the owner of public record, by stating their data source.

NEIGHBORHOOD
For this section, the appraiser must give all information about the subject's surrounding neighborhood and its effect on the subject's value. The appraiser will give a neighborhood description and comment on the market conditions.

SITE
The dimensions and area of the subject are given, as well as the zoning. This section will also provide information about the utilities, and any adverse site conditions or external factors.

IMPROVEMENTS
This section gives details about the subject from the type of slab up to the type of roof surface. This will include all amenities, appliances, and any additional features. The appraiser will then describe the condition of the subject, give any physical deficiencies or adverse conditions, and state whether or not the property conforms to the neighborhood.

PAGE 2:
SALES COMPARISON APPROACH
The appraiser will summarize information about the subject property and comparable sales in this section. Any sale or transfer history of the subject property and comparable sales will be researched and comments will be given. The appraiser will then give the indicated value by Sales Comparison Approach.

RECONCILIATION
The indicated value by Sales Comparison Approach is stated. Then, if developed, the appraiser will give the indicated value by Cost Approach and Income Approach. Whether the appraisal was completed "as is" or "subject to" is then noted, and the market value and effective date are given.

Page 3:
COST APPROACH
The appraiser will estimate the value of the subject property based on replacement or reconstruction costs, subtracting depreciation, and adding the estimated land value.

INCOME APPROACH (If Applicable)
A rent survey and an analysis of the rent comparables is conducted, and an estimated monthly market rent is given. Then a summary of income approach is given, including support for market rent.

PUD INFORMATION (If Applicable)
Generally, in this section, the appraiser will identify any annual or monthly fees that the PUD may require the homeowner to pay. These fees usually pay for maintenance or insure the developments.

PAGE 4:
DEFINITIONS
The report form is defined. This page tells what the scope of work is, the appraisals intended use and intended user, the definition of market value, and a statement of assumptions and limiting conditions is made.

PAGES 5-6:
CERTIFICATIONS
These are 25 items that the appraiser certifies and agrees to. They state that the appraiser has completed this appraisal in accordance with all requirements to understanding penalties resulting from any misrepresentation.

For Appraisers, a very helpful 131 page guide to properly filling out the FNMA 1004 form is Robert H. Mann's Line-By-Line Preparation of a Quality Uniform Residential Appraisal Report Manual. Visit appraisalurar dot com for ordering information.

Accurate Valuations Group Appraiser, William D. Cobb, has operated as a home appraiser for 15 years now primarily in the Greater Baton Rouge, Louisiana market. For more information on Accurate Valuations Home Appraisal Group, visit Baton Rouge Real Estate Appraisers http://www.getfastvalue.com. This article was written with the assistance of Brittany Stevenson.

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