Jonathan you may want to recheck and see if one of you misunderstood the question. MANY model homes are staged with furniture for illustrative purposes. They are not occupied (unless the sales office itself is located in one in which case an argument can be made).

Staged houses can and do frequently miss-portray the actual efficiency of the size. This should be mentioned in the body of the report. “BUT” so can a well decorated owner occupied home. Not all of home owner’s are perfect, maybe appraisers are?
The relocation industry did a study of owner occupied homes v vacant and concluded buyers paid more for the owner occupied homes??? They supposedly considered the extra pressures on the sellers and lenders holding vacant properties.

If it is mostly occupied by a persons furniture, it is occupied. This is what I was trained.

I was told by the MAI who trained me that furniture DOES equal occupied. If someone runs to the grocery store there home doesn’t automatically become vacant. When someone goes on vacation the home is not all other sudden vacant. It is not vacant until the owner moves out WITH his belongings.

Hmmm good one. I’m inclined to go with owner and comment accordingly

Thank you for your insight Mike.

You could argue either side of the question for your box inquiry IF you had enough explanatory discussion concerning your reasoning.

Our profession has been seriously harmed by the entire concept of UAD riding adherence to marketing boxes or form lines a certain way as if that eliminates the need for discussion. Pleased do not confuse the very narrow GSE mandatory requirements as being representative of either good or necessary appraisal practice.

When ‘boxes’ don’t have a definitive answer or applicability one way for the other market the one that makes the most sense, and then just explain it as you did here.

I’d probably add the obvious – the son continues to live in the house but has vacated the main living area level (living in the basement) in order to facilitate showing the property to prospective buyers as it would appear empty; as well as for his own privacy during marketing.

Seriously?

Read the original FNMA directions on UAD. It is EXPECTED that same ratings MAY still result in one being superior or inferior to another rating that is the same ‘C’ or ‘Q’ rating.

The entire concept of UAD ratings is one of the most asinine requirements ever to drop out of FNMA. Condition and quality are not absolutes as assumed and claimed by FNMA. They are in fact relative comparisons out in the marketplace contrary to FNMA’s decree to the contrary.

Any thing can be staged, our signature on the report makes us liable. if that signature is not good enough, they should not have contracted us. The underwriter can say anything and much denigrates Our reputation. Snap back like any mad dog, defend our reputation.

Of course you can have depreciation from wear. Thats not the same as saying it happens in all cases. Physical depreciation starts from the day the foundation is poured.

Actual market appreciation is not why developers raise prices. Construction cost increases are.

Mike, you can have physical depreciation and still have appreciation over time dictated by the market. If the appreciation is greater than the physical depreciation, yes, values can be higher over the long run. As always, as I like to tell real estate agents, it depends………

Mike, when appraisers are giving out Q and C ratings and justifying why they are doing so (providing support for), the UAD definitions that are required to be in the report (for all to read) can serve as a backdrop for ones reasoning and thinking (not principles). Why would a like definition C3 condition comp warrant a downward adjustment but be of the same rating? Is it because a C2 rating in part says “similar in condition to new construction”, and although superior on its own (to the subject) it is not like new construction so thus a C2 rating could not be supported?

Right or wrong, but if appraisers are getting flagged by FNMA / GSE’s, and or underwriters are using the UAD definitions in error (they get reports / same ratings but adjusted), encompassing the same UAD verbiage as part of your support goes a long way in getting your reports past those untrained eyes that often view our work. For me, I apply the principles but in part use the definitions to support my opinion.

Seek the truth.

Sounds more like a round about argument against foreign labor outsourcing. It is an admission the lender has failed in it’s due diligence to control competent process. They are hiring outsourced underwriters whom don’t know what an open house is. Find a better client.

https://www.numbersusa.com/

A blaring example of the underwriter missing the the explanations in the original descriptions. That employee of the lender should be noted and be used as an example of the lack of understanding and education from underwriters in general. She should have caught it when you suggested replacing the carpet and curtains as worn.

Bill UAD ONLY applies to FNMA and GSEs. Its not a valid source for appraisal principles. On the contrary-its largely an artificial construct fo the convenience of scraping data. UAD guidelines do not define the ownership interest in real estate that exists. Occupancy (status) is an indicator of rights that MAY reasonably be expected to exist.
Vacant or owner occupied= fee. Tenant occupied = leased fee.