Podcast | Tim Andersen | The Appraiser's Advocate

Part II – Does My Neighborhood Really Need Analysis? – TAA Podcast 039

Play

Neighborhood analytics? Really!? That’s easy! Just fill in the boxes on the 1004 form. What’s the bid deal?! Fannie Mae asks us to answer 36 questions about any subject’s neighborhood. Frankly, its not important that we reached a credible value conclusion. What is important is to explain why that conclusion is credible. That’s why due diligence is so important. Why are neighborhood values changing? Due diligence helps us understand the answer to that question. What’s the subject’s highest and and best use as improved? Again, due diligence to details and trends answers that question. Neighborhood analytics is how we determine where the comparable sales are. It’s how we determine which properties are the subject’s competition. We use it to determine boundaries. From it, we learn the most probable buyer. And, yes, it helps Fannie Mae measure risk, too. So, that’s why we engage in neighborhood analytics!

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to Top