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1004mc Form Help

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Gregory Beck, Jan 23, 2009.

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  1. Gregory Beck

    Gregory Beck Senior Member

    16
    Aug 6, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I have a question I am attempting to finish the 1004MC form,
    and here is my problem. Lets just talk about the 90 days back field
    to keep it simple. I have MLS, when I run closed sale for past 90 days
    I get the 90 day median sale price and list price which usually works out to anywhere from 90% or higher IE: SP 250,000 LP 300,000 ratio is 83%
    looks good right? Here is my dilemma, when I go back into MLS and search active listings and pending sales for 90 days back the listing prices are lower if I put that number into the median comparable list price it now throws the ratio to 105% because the new 90 day active listings are lower than what the closed sales used were listed at get it? So which number does the new form want the listings from the closed sales which brings the ratio into line or the new 90 active listings which throws the figures off. Any body figure this out yet please let me know. This is why I come to this site as I know someone out there has the correct answer.:clapping:
     
  2. George Hatch

    George Hatch Elite Member

    363
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    I interpreted "median comparable listings days on market" to refer to the listings for the closed sales, not to the actives referred to in Inventory Analysis section above. Among other reasons, it strikes me as irrelevant what the medians for actives are because they include listings that will never result in a sale.

    FWIW, I've never seen any appraiser relate medians or averages for all actives to medians or averages for closed sales. I chalk the confusion up to clumsy verbiage from Fannie.

    If it turns out my interpretation is incorrect it will only take me about 10 minutes to revise my worksheet and post it up.
     
  3. Eli Weiss

    Eli Weiss Senior Member

    2
    Nov 28, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    I think we should open one official 1004MC Q&A thread, opening different threads for each question, will make it too difficult to find answers later on....
     
  4. VegasWayne

    VegasWayne Senior Member

    16
    Nov 15, 2007
    Professional Status:
    Licensed Appraiser
    State:
    Nevada
    Active listings don't have a sale price, and therefore they don't have a list-to-sales price ratio. I would say that the first number is correct, the one based only on closed sales. The Wintotal form auto-calculates the median list-to-sale price ratio as the ratio of the median list price to median sale price so it is including active listings in determining the ratio. Since the current - 3 months group includes more currently active listings than the older groups, using these would skew the result. The announcement that came with the form offers little guidance on what listings are to be used and how to count them.
     
  5. Gregory Beck

    Gregory Beck Senior Member

    16
    Aug 6, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    thank you

    That cleared things up I just wanted to be sure.:)
     
  6. BC 2008

    BC 2008 New Member

    0
    Sep 8, 2008
    Professional Status:
    Licensed Appraiser
    State:
    California
    There's already a line for "Median Comparable Sales Days on Market" which I think is referring to the listings of closed sales. For "Median Comparable Listings Days on Market", I interpret as refer to listings for closed sales plus all comparable listings that were off market either by expired or cancelled. Currently active listings should not be included in the DOM calculation otherwise it will skew the "Median Listings Comparable DOM" of the "Current -3 months" period since many of the active listing may just be on the market for a few days.
    Does anybody have a different interpretation regarding this matter?
     
  7. VegasWayne

    VegasWayne Senior Member

    16
    Nov 15, 2007
    Professional Status:
    Licensed Appraiser
    State:
    Nevada
    You may be correct in your interpretation of calculating DOM, I have been including the active listings in my calculations. They are not all that recent, some have been on the market for a long time and may be about to expire. I know of one listing that has been active for over four years. The median value may only by slightly effected by including currently active listings.
     
  8. BC 2008

    BC 2008 New Member

    0
    Sep 8, 2008
    Professional Status:
    Licensed Appraiser
    State:
    California
    I disagree with that calculation method. What it is calculating is the "Median list-to-Median Sale" price ratio.
    I believe that to find the Median List-to-Sale price ratio, we should calculate the List-to-Sale price ratios first and take the median of those ratios.
     
  9. VegasWayne

    VegasWayne Senior Member

    16
    Nov 15, 2007
    Professional Status:
    Licensed Appraiser
    State:
    Nevada
    I locked the fields from being automatically filled and put in the the number calculated the way you stated, the actual median of the calculated list-to-sale price ratios.
     
  10. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    Top Poster Of the Month

    776
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    what from fannie isn't? Throw the horse over the fence a bale of hay...
     
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