New market analysis changes.

[Terrel L. Shields]

This is one year's residential sales in an Oklahoma County. Looks pretty "stable" to me - low volume but stable.
Which makes more sense - the above or

 

[Non Sequitur]

Never mind, video link was blocked.

 

[J Grant]

Fannie selling guide-
Appraisal market areasTo promote consistency and transparency in appraisal reports, Fannie Mae, in collaboration with Freddie Mac, is updatingrequirements related to the Market Area analysis of the appraisal report and implementing standardized definitions for the terms“Neighborhood” and “Market Area.” The Selling Guide is being updated to include these new definitions in the Glossary.Additional guidance and requirements are provided for the following:• Selection of comparable sales;• Establish a minimum timeframe of 12 months from which the overall market trend must be derived;• Identify that the overall market trend may be different from the adjustments applied to individual comparable sales;• Include an illustration of the methodology used to determine specific comparable sale time adjustments for changes inmarket conditions; and• The appraiser must report the market analysis that supports both the indicated overall market trend and market derivedtime adjustments for changes in market conditions.

 

[TerryRohrer]

Fannie selling guide-
Appraisal market areasTo promote consistency and transparency in appraisal reports, Fannie Mae, in collaboration with Freddie Mac, is updatingrequirements related to the Market Area analysis of the appraisal report and implementing standardized definitions for the terms“Neighborhood” and “Market Area.” The Selling Guide is being updated to include these new definitions in the Glossary.Additional guidance and requirements are provided for the following:• Selection of comparable sales;• Establish a minimum timeframe of 12 months from which the overall market trend must be derived;• Identify that the overall market trend may be different from the adjustments applied to individual comparable sales;• Include an illustration of the methodology used to determine specific comparable sale time adjustments for changes inmarket conditions; and• The appraiser must report the market analysis that supports both the indicated overall market trend and market derivedtime adjustments for changes in market conditions.

It would be nice if you would check the accuracy of your posts, particularly when the correct information has been provided here numerous times. And although it is commendable that you bothered to put a source in for a change, you did not post the accurate source, as the information you attributed to the Fannie Selling Guide was, in fact, never in the Fannie Selling Guide. (Nor was it ever included in the Freddie Guide).

"Questions about November 2024 Policy Announcement
Our November 2024 Selling Guide announcement states “Include an illustration of the methodology used to determine specific comparable sale time adjustments for changes in market conditions.” Since then, we have received several questions as to whether this means appraisers need to include the illustration in their appraisal reports. The answer is no; appraisers are not required to put such a chart in their reports. What we intended to convey is that we have included a link to the illustration in the Selling Guide as a learning aid to provide guidance to lenders and appraisers about how to make time adjustments."

Appraiser Update | Fannie Mae

Welcome to the Q2 2025 Fannie Mae Appraiser Update.

singlefamily.fanniemae.com

 

[Tom D]

Are a couple of graphs pictures sufficient alone for your trend decision, or is it going to be, please explain why didn't you adjust for those valleys and hills for each month, in the last 12 months.

Certainly a linear adjustment, or a lack of seems to be on the intellectualy level of the typical lenders.
But if the non linear program can spit out a paragraph of mumbo jumbo, i'm in.

And does 2 low recent months mean a negative.
Let the confusion begin. Especially, for you lackie AMC workers.

 

[Tom4value]

I'd assume appraisers were developing support and keeping it in their work file and for UARA work, including the MC addendum. The change is to provide the kind of support that used to be in a work file in the report, or if the work file support was too messy, then develop a readable or visual communion of it for market condition trends .

Seems some appraisers are searching for a short cut or trying to imitate what they think fannie or freddie want to see based on one chart used as an illustration.

I have long said that the 1004MC addendum was one of the few "mandatory" forms that I can get on board with, as it (if filled with good data and explained well in the report) provides good support for your conclusions about market trends. My software also prints out the charts that support the addendum but I never put them in the report as I don't want readers to use them to come up with their own (uneducated) conclusions.

I am speculating that Freddie and lenders were noticing that the data in the 1004MC addendum had nothing to do with the boilerplate market comments and are now calling BS on this lack of analysis. Time to get back to basics and actually look at data and derive an educated analysis. Good appraisers will look at these "new" directives and say, "what changes?"

 

[Tom D]

I'm freaking out about these new changes. What is everyone doing. I know there is some software out there, like True Footage. However, I live in a small rural community and so far I do not see coverage. What is the alternative solution?

Coming back to your inborn worry. You are thinking to micro, your neighborhood could be the whole county.
I keep repeating this, that maybe your MLS has market news from the realtors or their own market data to help realtors know what is happening. Or go to the realtor site and look around. If you don't have it, then no one has it. But i bet realtors web site has plenty of market data. County data for rural is perfectly fine, seemingly the only source

If you are so the born nervous type look at spark. With the MLS data you will get trend charts to use.

 

[Non Sequitur]

Another solution for everyone’s consideration:

Property Market Analyzer Template

Property Market Analyzer is an Excel-based, stand-alone tool crafted specifically for real estate appraisers—even those with minimal to moderate Excel experience. Designed to give you a powerful jumpstart, this template allows you to simply copy and paste your MLS or other source data and...

letspivotsolutions.com

 

[Non Sequitur]

 

[Surf Cat]

Another solution for everyone’s consideration:

Property Market Analyzer Template

Property Market Analyzer is an Excel-based, stand-alone tool crafted specifically for real estate appraisers—even those with minimal to moderate Excel experience. Designed to give you a powerful jumpstart, this template allows you to simply copy and paste your MLS or other source data and...

letspivotsolutions.com

$450.00!! Geez....yet another take advantage of the appraiser software....to be dead ba*ls on accurate.

"Unlock over 70 dynamic charts and tables that provide deep insights into market and neighborhood trends..."

That'll baffle em...Lol