1004mc And Comps

[timd354]

That's definitely how it should be done Res.

By the way, if you ever leave the appraisal profession, you have a future as a calligrapher...lol

 

[DWiley]

Res - That is a great example. The data in the 1004MC grid is clearly not sufficient for trend analysis, so you add more. I really like your six year trend graph. That kind of thing can really highlight seasonal trends in areas where that is prevalent. I used to do five year trends. I guess I am just a slacker compared to you

If one has the right tools, and knows how to use them, analysis like that can be done fairly quickly.

 

[Pam Wyant]

Good work, Res Guy! Have to give you kudos for your detailed analysis.

Of course, I may be cussing you out next month when the AMCs pick up on this and decide we all have to have that level of detail in all our reports. <grin>

 

[J Grant]

I also admire Res Guy's thoroughness.

Wanted to comment above quantity of data , ideal is to focus on data most relevant to the assignment. Imo the charts of REO vs non REO is not relevant to this assignment, nor is a six year trend. He . could have stated that there were 48 sales and only 5 REO /short and therefore REO activity is not driving the market.

The focus of analysis would be best directed that only four comps sales found at price avg of 327k, versus 48 properties sold between 257-275k, That indicates the subject and four comps are a small niche in subdivision/r market area. The four higher price comp sales took place early half of the year no sales last 6 months, which may or may not mean something. Why did these four sell for higher $....are they bigger,, newer, more upgraded,...one assumes the subject would be as well...what impact on marketability in an area where most properties sell lower price point..

I do like the idea of presenting two MC forms, one of limited comps to subject and the other of next most similar market area sales and listings

 

[Peter LeQuire]

[QUOTE="I asked about this before but never got a answer. Does anybody know the reasoning behind the prior 7-12 month period being combined?[/QUOTE]

The designers of the form are Trinitarians?

 

[residentialguy]

Good points, JG. The reason I hit the distressed sales so hard is because they have been such a point of contention and I feel that it will always be an Achilles heel if support is not shown, rather then told; it is a sore spot as even the 1004MC devotes a whole section to it. That on top of the new "show me the support" attitude going on, as well as CU's why didn't they use this sale mentality. The last thing I need is someone reviewing it trying to say that they should have been used as a comp, an idea that you often embrace...in fact you have been a catalyst in me devoting so much effort to this area.

As far as "the relevant aspect is around the subject... only four comps found sold at avg of 327, 500, versus 48 other properties sold between 257-275k" goes, I do address that in the section of comments pertaining to predominant values shown on page 1, which I believe is a more appropriate place to explain that aspect of why it's not the predominant sale price. And I bet if you really thought about it, you would too.

Thanks everyone for you kind words.
My hope is that this will help the many lurkers in how to make their report supported, Fannie compliant and not be misleading....which is always challenge with Fannie
.

 

[J Grant]

WHY did the four comps sell for 327k? , since most homes are sold 257-275 k. As a reader, I have no idea why they sold for more based on info on MC page and the small amount of sales makes them a niche market...were they bigger, newer, more upgraded,....you addressed why they sold for more on page 1, but imo still needed on MC form page but maybe taht is imo...the small # of comp sales means it is a niche market.

Out of curiosity, why did they sell for more?

Good job on REO but sorry to say I think it is a distraction ... all needed to say was only 5 REO and short sales took place. in past year, though I applaud the detail of it '

 

[DTB]

Yes, I was told by people at Fannie that it was designed that way due physical formatting issues with the paper/pdf form (for scanning or whatever other purposes they had - this was pre-UAD/UCDP) that there was only room for 3 columns, not 4 columns (1 for each of the past 4 quarters). Sounds pretty silly to be sure, but that is what I was told be those you were there at the time.

One need say no more about the people in charge of your industry. If I were still in the biz I'd cry, but being outside of the industry I can only laugh (and clean my keyboard)

 

[residentialguy]

WHY did the four comps sell for 327k? , since most homes are sold 257-275 k. As a reader, I have no idea why they sold for more based on info on that page. Were they bigger, newer, more upgraded, why did they sell for more?

One would assume (subject shares whatever attributes makes comps sold so much higher and then it becomes a niche market is my point...

Imo REO sales, aside from spirited debates on the board, when in such small amounts as you indicate don't need a bunch of charts devoted to them but that is just a difference of opinion, it is distracting as so much info is present about REO and si years and so on but noting about why the four comps for the subject sold for so much higher than other area non REO sales ( and the what that means for marketability)

I edited my last post while you posted that comment, so see the prior post for your answers. This is a mixed neighborhood with gentrification going on, with many newer developments (like the subject's) that popped up, which I explained in the appropriate section of my comments.

When this market crashes again, (which is very likely), they will come at us again with "they over-valued my property" and point to those distressed sales as proof. I'd rather explain it to them in the appraisal, rather than in court - much easier on the pocket book & preferable with E&O. I learn from history and I hope I can show others who forget about history (like you), how we can help protect ourselves from unnecessary costs of getting sued. And that is something every appraiser should like.

 

[J Grant]

I certainly don't forget about history lol....if at one time REO's were prevalent in a market but now are less I talk about it, or will mention the # of them. If I mark yes for the REO section I delve deeper.

A newer section explains the prices.