1004MC - Just wondering?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by tugdog, Mar 1, 2009.

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  1. tugdog

    tugdog New Member

    0
    Dec 31, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Anyone else notice similar situations?

    1) Both local MLS systems do not break down data into anything smaller than Townships (around here they are large and varied).

    2) Both MLS systems state data is not guaranteed reliable.

    3) According to Handbook 4150.2 page D-29 under verification sources
    " The MLS by itself is not considered a verification source.":blush:
     
  2. supertens

    supertens New Member

    0
    Mar 2, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Mississippi

    For sure I'm on our local MLS committee we are meeting to see in we can get the software to answer the questions on the form in one search. The 1004mc I did this week took about 20 searches. I will let you guys know what we come up with.
     
  3. moh malekpour

    moh malekpour Elite Member

    0
    May 25, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    No data source by itself is considered a verification source. You have to have two or more data sources to verify each other. If one source says the property is 1000 SF and the other source says it is 1500 SF, then you have to find a third data source to verify one of those two or call the agent to verify one of the two.
     
  4. Riick

    Riick Elite Member

    11
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    OP...... Two quick questions:

    (a) If you're going to verify the data for the Township for the prior year or two, what will you be charging to complete this report?

    (b) How are you going to meet a even a two week turntime, if you have to have ALL the Salespeople to get back to you and confirm detail on each and every sale?

    Ooops.. 3rd question:
    (c) Don't you think it might be better to select out of the group, the sales that are comparable to the subject, since that is what is being asked of you?
     
  5. supertens

    supertens New Member

    0
    Mar 2, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Mississippi
    I have tried it both ways and got different answers each time. Its nice to use the statistics section to get median price and DOM but or system doesn't allow to choose which comps are comparable. I had to choose an area and then a price range. This search included sales that should not have been in the search.The search did give a good overview of the market. I made a statement as to how I arrived at the data and why it was different than the numbers on page 2 of the URAR. They took the answer because at this point they don't have a clue how to underwrite this form.

    Riick do you have an opinion on DOM vs Marketing time?

    Thanks

    Todd
     
  6. Elliott

    Elliott Elite Member

    5
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    Most MLS's are 'majors' and they have adequate programming staff.
    I know for my MLS (FlexMLS) there is discussion with them about
    getting us appraisers the right data. I'm not above letting them know
    that about 30% of their dues in my market come from too many
    appraisers in my market. Its all a silly process, but if Fannie wants the
    data, they'll get it, but they WILL pay for it, even if it doesn't mean much.
    All bureacracys have to justify their existence.
     
  7. Riick

    Riick Elite Member

    11
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    Todd
    Suggest you do a search for "1004MC" in title and get a copy of George Hatch's Excel spreadsheet solution. "Works a treat"
    Marketing Time is calculated for you, correctly, given MLS data is correct
    .... along with everything else.

    Once you download the data there's no reason you can't sort it 7 ways from Sunday and select comparable sales for your data.
     
  8. supertens

    supertens New Member

    0
    Mar 2, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Mississippi
    Riick, My point is an MLS system can't give you marketing time. It can only give exposure time. If you have 3 total sales in a subdivision two of which were listed in the construction phase and have a 350 & 400 DOM with the third at 150 and the broader market at 150 are you going to call Marketing time off of the DOM median of 350(like the form ask) or are you going to inject your judgement and call it 150. This form is designed to take our judgment out of the equation as I see it. The box checkers are not going to like the numbers not matching.
     
  9. George Hatch

    George Hatch Elite Member

    18
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    You're reading way too much into the "marketing time" term as used by the MLS boards. It's the same as Days on Market (aka exposure time). It is not the appraisers' version of a forecast into the future. And yes, every MLS system I've seen so far absolutely can keep track of days on market.

    If you're relying on only 3 or 5 or 7 datapoints the results are going to be meaningless anyway. Statisticians don't like datasets below 20. Besides, the term "comparable" is used differently in this form than on the URAR and includes a lot more properties than what an appraiser would consider to be comparable. If your market is so small that a potential buyer (not you) would only consider 3 other properties to be comparable then no analysis will be meaningful, including the one you do on the URAR.

    A market overview is just that, an overview of the macro trends, not another application of the micro analysis such as what we do on the Sales Comparison grid.

    Box checkers are primarily a problem for appraisers who can't/won't explain what they're doing. I don't fear the box checkers and neither should you.
     
  10. Howard Klahr

    Howard Klahr Senior Member

    14
    Oct 4, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    George, George, George - No MLS appropriately tracks days on market, so long as agents are responsible for data input. When a home is listed for sale and the listing expires and is re-listed by another agent, days on market resets, yet that property was on the market longer than reported by the MLS system. Even when the same agent retains the listing, so long as the agent enters a new MLS number, the days on market count is re-set again. Presently, cumulative days on market is not a field available in any of the major MLS software providers.
     
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