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Adjustments via 1004MC

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by John Marshall, Jan 27, 2009.

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  1. John Marshall

    John Marshall Member

    0
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    Now that they want data in 3 month intervales, does that affect the way you apply adjustments? For instance, if you discover sales from September to December dropped 10% on an annual basis and June to September 5% on an annual basis, then do you apply the same percentages to your sales? - ie, use a sale that occurred on June 1 and the date of your appraisal is December 31, do you adjust at 10% from June to September then 5% from September to December? Or do you combine the 5 & 10 and adjust at 7.5% for the total 6 months?
     
  2. CANative

    CANative Elite Member

    122
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    IMO, median is not a very good benchmark unless the subject is representative of "median" type properties. Even then...

    Why don't just make a new % by adjust for the difference in median between June and your effective date?

    Month, median, % per year or per month? Gakkk

    gb
     
  3. Randolph Kinney

    Randolph Kinney Elite Member
    Gold Supporting Member

    55
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I believe many will search for the application of the data found on the 1004 MC form but few will find that data in that format presented that way to be of any benefit.

    Why not just do a scatter plot of the raw prices over the 12 month period with a linear regression line fit? Oh, and don't forget to examine R^2 to see how well the data correlates.
     
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