I have some real life analysis of a well known neighborhood in Nashville
Nashville isn't Thompson's Station. How stratified is the demographic of TS, population 2,500 or so? It's those kinds of places where the MC looks idiotic.
More blame the bad appraiser rhetoric. And the way to fix it is to provide a misleading form to be fill out.
Have to agree. The form works perhaps in the sort of city that Wiley describes, but for tons of us, much, if not most, of our work would be in small villages, rural communities and not cookie cutter suburbia. Our gated communities hold in cows. Further, I hear people talk about someone not doing "real" market analysis but again, where is the evidence of that? Judging what appraisers have done over the years based upon the review of appraisals flagged because they were flawed does not automatically mean that all appraisers used flawed data. Reviews rarely get to see "good" reports. And even in those instances where the report did not include more than broiler plate identical report-to-report "market analysis"...so what? Does that mean the appraiser did not know the market? Or, simply did not report it in detail and got about the business of valuing the property instead of adding more mindless blather to the report? For the life of me, half of the forms used by Fannie ask for information that will not impact the value in any form or fashion.
Has anyone ever changed final value because you had the census tract wrong? Or, one of the comps was on the other side of the census tract line? Ever change a value because a property was on the west instead of the east side of a road? Ever pondered the purpose of "map reference" or make an adjustment because one house was all electric, one was natural gas, and one was on propane? We are asked to differentiate things that are perfectly meaningless in terms of value. Never mind we probably don't know there is an ex-con next door, a meth lab, etc. I just saw a sale where the MLS does not mention what was common knowledge of the bank/owner and the Realtor. It was the Realtor's brother who served the papers on the owner with two deputies in tow. And the man served threatened to kill the attorney for doing so. As soon as the court ruled in favor of the bank, the dwelling burned to the ground. Was any of that mentioned in the MLS? So the buyer is from 200 miles away and has no idea that the three closest families are the father, sister and son of the person foreclosed upon...and it was the father who made the threat, and he has been in a gun fight before and isn't afraid of another. I was valuing another farm 20 miles away and the buyer told me he looked at that place and decided against it because he would not feel safe. No appraiser (except me since I had valued it ) would know that fact and yet it was undisclosed in the MLS or disclosures. So how useful is the MC when things are actually serious...?
I think the 1004MC form needs to be revised to show eight three month periods
Again, the problem I see is the lack of data to provide meaningful analysis. I am not going to judge "market conditions" based on two low or high sales, and without a number of sales or a long term view of sales, the notion I can pick "low" from "high" is nonsensical. Statistically significant data requires a minimum of sales. When that threshold is not reached, then the only other way is pairing over time which is more judgment than math.
