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

[Joe Flacco]

The issue with the 1004MC is not appraisers not understanding statistics. The issue with it is whoever designed the form and wrote the instructions not understanding real estate and how different every property is.

 

[CGinMN]

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 )

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.

Where is it?

 

[NC Appraising]

Where is it?

I have already posted it as a link.

 

[Carnivore]

Where is it?

I am trying to reduce the File size so I can upload it(There is a limit at this site). I also am trying to locate the Link where I got it from. The Author is a Highly Respected and very Qualified Member of this forum.

 

[NC Appraising]

The 1004MC requires understanding of use of statistics which many appraisers do not.

No. It requires a appraiser to be a expert in the market that they are appraising in and to realize when the results of the 1004MC is BS.

If every data base, online sources, MLS, Fannie Mae, FRED are all screaming at the top of their lungs that the market is increasing, but the 1004MC is showing stable.....something is wrong. The appraiser either needs to find a different profession or get off their lazy you know what and analyze more data.....

 

[Carnivore]

Here is a Good Question in the form of a Challenge: In the context of a Residential Assignment; Define Comparable.

I will Answer this First: The Perfect Comparable is a Property that has the Identical Economic Characteristics of your Subject.
P.S. It all goes downhill from there!

 

[NC Appraising]

I am trying to reduce the File size so I can upload it(There is a limit at this site). I also am trying to locate the Link where I got it from. The Author is a Highly Respected and very Qualified Member of this forum.

Did not M produce the video? I have no idea who made the form?

 

[Fernando]

No. It requires a appraiser to be a expert in the market that they are appraising in and to realize when the results BS.

If every data base, online sources, MLS, Fannie Mae, FRED are all screaming at the top of their lungs that the market is increasing, but the 1004MC is showing stable.....something is wrong. The appraiser either needs to find a different profession or get off their lazy you know what and analyze more data.....

MLS just shows absolute prices which needs to be interpreted. 1004MC if use correctly with stats can show a stable market even though from the outside, prices are increasing.
My market has been stable last year but media keeps saying prices increasing and public believes it and is bidding up the prices over market which is happening now.

 

[DWiley]

If every data base, online sources, MLS, Fannie Mae, FRED are all screaming at the top of their lungs that the market is increasing, but the 1004MC is showing stable.....something is wrong.

Yep. And that something is probably incorrect completion of the 1004MC

This has gone on for years now, and not one person has ever been able to provide a properly complete 1004MC that had invalid results. But several have supplied me incomplete and/or incorrectly completed one to plead their case.

 

[Carnivore]

MLS just shows absolute prices which needs to be interpreted. 1004MC if use correctly with stats can show a stable market even though from the outside, prices are increasing.
My market has been stable last year but media keeps saying prices increasing and public believes it and is bidding up the prices over market which is happening now.

Look it this way and you will understand why people will submit Offers above List Price.

The Clues are Income levels of Buyers, Supply Shortage Mo'Buyers than Houses! Very Low Interest Rates. Intrest Rates Literally have no way to go but up.

Figure out how much more their Monthly House Payment will be at Sale Price at Listing Price. Then add a $1,000. How much did their 30 Year Mortgage Payment rise?
Add another $1,000. Keep Going!

Take into consideration they may have just migrated into the area, living in an apartment, already sold their home in New York/California. Income tax Time is coming soon. They have considerable discretionary income. Household Goods are in Storage. Their Living in an Apartment/Rental House and Lease renewal is coming Quickly.
Inflation is beginning to rear its ugly face. The Mere Fact that they don't have a Mortgage/Real Property Tax Deduction will cost them plenty.