1004MC & Neighborhood Section page 1

[Rich Heyn]

Exactly. That's where breaking the neighborhood 1-unit down to competing comparalbe sales on the 1004MC can show this contrast.

But then which box (increasing, stable, decreasing) gets checked in the neighborhood section under "one-unit housing trends?"

 

[CANative]

But then which box (increasing, stable, decreasing) gets checked in the neighborhood section under "one-unit housing trends?"

Whatever the trend is for one unit housing in the neighborhood. Like in my example. The trend for one unit housing is declining but for properties like the subject it is stable, if not increasing slightly.

 

[residentialguy]

But then which box (increasing, stable, decreasing) gets checked in the neighborhood section under "one-unit housing trends?"

What Greg said.

The box is applicable to what the section pertains to. On page one, the box is about the one-unit housing in the neighborhood - that's the heading it is under and makes sense. On 1004MC the box is applicable to similar competing sales to the subject.

 

[CANative]

I think that by dumbing down to FannieFormatting and use of this form by weak and hurried appraisers, lenders are leaving a lot of money on the table especially during the REO process.

 

[residentialguy]

I think that by dumbing down to FannieFormatting and use of this form by weak and hurried appraisers, lenders are leaving a lot of money on the table especially during the REO process.

I agree. Now they don't need to look at the whole market, they just throw a few choice "comparables" on there and bingo-bango-there ya go, bro.

 

[Rich Heyn]

Greg and ResGuy,
Your neighborhood consists of three distinct submarkets. Submarket A is increasing, B is stable and C is declining. Which box in the "one-unit housing trends" on page one of the URAR gets checked?

 

[residentialguy]

The 3 combined.

 

[Rich Heyn]

The 3 combined.

I don't know what you mean by "the three combined." You check all three boxes?

 

[NC Appraising]

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Your top of page two I have a problem with.

It specifically asks for "comparable properties".

How is a 80,000 property comparable to a 500,000 property.
Someone looking to buy a starter home for 80,000-125,000 can't afford a 500,000 or a 300,000 property.
Those are just sales, not "substitute properties".



I realize your area is tough to appraise in, but would you really use a 300,000 property and grid it out if the subjects price point is 80,000?

 

[DWiley]

The 3 combined.

And what use would THAT information be?

They way it was put to me was basically - "The lender isn't lending on all homes in the neighbrohood. They are lending on a specific property, and the one-unit housing trends should address the subject property and the properties is most directly competes with."

I often find disaggregated data. In fact I am wrapping up a report right now where the data shows that in the general area prices are stable, but homes competing with my subject are declining. So, I marked "decling" - that is the trend applicable to the subject and competing properties. The Market Conditions comments in the report address both the submarket and the general area, but the trend boxes address the subject.