Selling Guide Announcement (SEL-2024-07)

[Surf Cat]

Houston is that busy for you pundits out there. Yes, the 1004MC shows a slight decrease, but is it really? Larger homes are selling less than smaller homes right now because of interest rates. It could be a lack of like/kind exact size homes.

And there it is.....

I would wager that all 203 sales in the 1004 MC provided are not all competitive to the subject in the subject's immediate Market area.

That's said, if the op were to "whittle down" to 15% North and South of the subject's GLA, focusing on equal bedroom and bathroom count, in the subject's immediate neighborhood, with similar year builds and condition..... the market trend very well may be different and tighten up.....to a stable indication.

But as it stands, it's clearly indicating a decline.

 

[NC Appraising]

And, yes, there is software out there that does the analysis as you susuggest.

Don't leave me hanging.....what is it? True tracts?


I would like something that I am in more control over. I input the GLA, garage, site adjustments, etc.

 

[chad hampton]

You guys are looking for a lot of information from a $275 AMC report

how did the value look?

 

[CGinMN]

While I agree that the nature of the inquiry is unclear, the data presented in this thread does not support reporting a stable market (at least not if one is following the GSE protocol). There certainly may be additional info that does, and the OP did indicate that additional analysis was provided.

Until you publish specific parameters about what is stable, increasing, or declining, you’re wrong. It’s compliant.

Are you saying the data from 12 months ago must be identical to today? Any variation in median price allowed? If so, does the appraiser still have discretion? What about the other data presented on the 1004MC, can the appraiser reconcile that data with the median price to derive their opinions?

 

[Fernando]

Without seeing the Market Conditions Report that was included, we would all just be guessing as to why they made this request. Like others, i have no way of knowing what was in that MC report, but I can say that I have seen a lot of 1004MC forms where the included data was way to thin to draw any conclusions and/or the data presented actually contradicted the reports' trends and/or adjustments.

We know 1004MC is a joke. Did you based it on 1004MC?
It appears your market conditions report was not persuasive in showing your price trend. Reviewer did not believe your results.

 

[NC Appraising]

A great example of why the data needs to be analyzed and not just dumped into a spreadsheet or other software tool.

Agree. A lot of appraisers just data dump and move on.

But also keep in mind that the market is not perfect. Especially in a market that has a undersupply of homes with a high demand.

If that were not the case, my comps after being adjusted, would all be adjusted to the exact same amount. Or, if I used three identical comps and all sold at the exact same price. We know that rarely happens.


The adjusted comps in the grid is a great example of how the 1004mc is not perfect, as the market is not perfect.

That being said, I still use it as additional support.

 

[Tim Hicks (Texas)]

Another example: 1960 built house, 2 bedroom, 1 bath, 2 car garage. No 2/1's within a mile, only one other pending2/1. Had to go four miles for other 2/1 homes. Only three other sales of that age within one mile all 3/2's. Basically, no market data to support any trend for that specific market.

 

[NC Appraising]

Another example: 1960 built house, 2 bedroom, 1 bath, 2 car garage. No 2/1's within a mile, only one other pending2/1. Had to go four miles for other 2/1 homes. Only three other sales of that age within one mile all 3/2's. Basically, no market data to support any trend for that specific market.

The instructions for the 1004mc states that if you deem the data to be unreliable or a lack of data, you must provide additional data to support market trends.

Don't give up Tim, i believe in you. You got this. if zillow can do it, you can too

 

[Fernando]

Doing price trend analysis require understanding of statistics especially with relevant information.
Some think throwing in data will substantiate their claims.
I can look at what data collect and if not acceptable, throw it back to the appraiser to show better proof.

 

[CGinMN]

The portion of the 1004MC where the appraiser is asked to summarize the support for your conclusions is not included in the screenshot. If we're assuming that it was left blank or wasn't filled out correctly, then none of the appraiser's conclusions are compliant no matter what they marked. But I'm not sure why we would assume that simply because the appraiser marked the stable box.

Revision Reason: Per Fannie updated guidelines; Selling Guide Announcement (SEL-2024-07) dated Nov. 6, 2024, and as of 2/5/2025; we require statistical data to support stated market conditions along with the source of the data.

This isn't even what the selling guide or the announcement says. Nothing about statistical data being required. I read this and the rest of the boilerplate request I'm immediately skeptical that it's the reviewer who was lazy, not the appraiser.