Considering filing complaint for lack of market conditions adjustment on stale comps

[Mejappz]

that form is junk. not even worth the paper it is written on. median list price

i wonder if that is the same form the gses use when they waive the appraisal

I think the 1004MC was written by a banker who works at Wells Fargo.

 

[NC Appraising]

Note that the header says, Overall Trend. It does not say, “Overall Trend from Data to the Left”.

You make a good point and the keyword is "trend".

This market is going to stabilize or decline eventually. Since the data is dated on the 1004 MC form, you can have 300,000, 315,000, 325,000 on the 1004MC, but if an appraiser is a expert in the market, and the actives or pendings show 325,000, DOM is increasing, months supply is increasing, one could now check "stable", even though the "median sale price" is showing increasing.

Another example of how the 1004MC can be inaccurate or not reliable and the appraiser should not put all of the weight on the 1004MC form.

 

[NC Appraising]

Boy didn't we got off track from the OP

Hey, if the OP decides to turn the appraiser into the board, this thread would be great to use as a defense LOL. See appraisal board, 260 posts and my peers are all over the place on this issue. Bunch of crazies. Cannot agree on anything.

 

[Sadie]

Hey, if the OP decides to turn the appraiser into the board, this thread would be great to use as a defense LOL. See appraisal board, 260 posts and my peers are all over the place on this issue. Bunch of crazies. Cannot agree on anything.

I think the 1004MC was written by a banker who works at Wells Fargo.

If you watched the little video you would see that it was written by a reviewer who thinks that our job is just so easy and there are lots of really good comps around every corner.

 

[djd09]

I think the 1004MC was written by a banker who works at Wells Fargo.

i know who wrote it. he don't post no more. hee haw.

 

[DWiley]

Are you saying the overall trend on the right is derived from an analysis of the data outputs on the left?

No. I am saying the trends should not be limited to the data in the grid, especially if the data in the grid is insufficient for trend analysis

Overall the biggest issue with the 1004MC was that many read the actual instructions. And, to be fair, the detailed instructions were provided over time, and they changed. That is why we created the booklet with all the instructions in one place

 

[DWiley]

i know who wrote it. he don't post no more. hee haw.

As far as I know he has never posted here. I also know who wrote it, as I was asked to comment on various drafts. It was modeled after a form that WF created and used.

 

[Carnivore]

I don't know why this is even a discussion. The GSE's expectation is for the neighborhood trends to reflect the subject's market segment, not that of the actual neighborhood itself. That expectation precedes the 1004MC. For that matter, the conflation of market segment with neighborhood in these forms extends back to before any of us even start appraising. The problem starts with the current design of the form and it will end if/when the forms are revised to make that distinction between the geographic neighborhood vs the subject's market segment by having separate analyses of each.

In the meantime the instructions for this form spell the current expectations out in detail.

George as usual your spot on as usual. So I have attached a document below that explains the 1004mc in Detail. Every Trainee and brand new appraiser should save this to their Puter or even better Print it out. I have it printed out myself. Can not recall how I stumbled upon this document.

All it took was 30+ pages. (I removed some to reduce size )

No. I am saying the trends should not be limited to the data in the grid, especially if the data in the grid is insufficient for trend analysis

Overall the biggest issue with the 1004MC was that many read the actual instructions. And, to be fair, the detailed instructions were provided over time, and they changed. That is why we created the booklet with all the instructions in one place

Danny I have your Booklet. All 38 Pages. Very comprehensive.

Which begs the Question. If it is so simple why did it need 38 Pages to explain it.

 

[Joe Flacco]

The 1004 MC sucks. The only way the 1004MC format and instructions would work is if the data included were IDENTICAL properties. Not merely very similar.

 

[Fernando]

The 1004MC requires understanding of use of statistics which many appraisers do not.
A small data set is difficult to make conclusions.
How many data then?
I say at least 10 sales for each quarter to make good analysis but that is difficult because of limited similar comps.
So the appraiser needs to look at each market and determine how broad to make the criteria to capture enough data points.
It requires appraiser's knowledge and understanding of stats.
And again I look at absolute prices and $/sf because when criteria is widen, in general larger homes sell at lower $/sf than smaller homes.
Keep this mind.