hastalavista
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I hear some AMCs are doing something similar in their requirement to print a detail and line-item MLS list required with each report. m2:
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1004MC & Neighborhood Section page 1
- Thread starter Gerry Sauceda
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I hear some AMCs are doing something similar in their requirement to print a detail and line-item MLS list required with each report. m2:
residentialguy
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I charge per line. 
Doug DeMars
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IMO, the instructions for the MC form are rather flexible. As such, USPAP takes a front seat with respect to providing reports that are not misleading and credible.
The instructions found on top of the MC form have 3 fat IF statements and several contingency phrases.
"...must fill in all the information to the extent it is availbale and reliable (most often limiting your data to a defined neighborhood is going to be unreliable) and must provide analysis...If any required data is unavailable or is considered unreliable (same concept above), the appraiser must provide an explanation...Sales and listings must be properties that compete with the subject property (here's where extending your sub-market outside of your defined neighborhood is not only necessary, it is often required to provide a reliable report), determined by applying the criteria that would be used by a prospective buyer of the subject property."
The top of page 2 is where things go sour. I add a comment in my reports that state the competing properties (reported on top of page 2) are from my defined sub-market and not just from my defined neighborhood. As far as I can tell, as long as I'm explaining my departure from the form and why it is necessary to do so, I have no worries.
The instructions found on top of the MC form have 3 fat IF statements and several contingency phrases.
"...must fill in all the information to the extent it is availbale and reliable (most often limiting your data to a defined neighborhood is going to be unreliable) and must provide analysis...If any required data is unavailable or is considered unreliable (same concept above), the appraiser must provide an explanation...Sales and listings must be properties that compete with the subject property (here's where extending your sub-market outside of your defined neighborhood is not only necessary, it is often required to provide a reliable report), determined by applying the criteria that would be used by a prospective buyer of the subject property."
The top of page 2 is where things go sour. I add a comment in my reports that state the competing properties (reported on top of page 2) are from my defined sub-market and not just from my defined neighborhood. As far as I can tell, as long as I'm explaining my departure from the form and why it is necessary to do so, I have no worries.
DWiley
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It seems that some appraisers in this Forum have some sort of list of the Fannie Mae assignment conditions that one can ignore. Where can I get a copy?
If I am free to ignore the instructions for the MC form, can I also ignore the guidance regarding the "house and 5 acre rule" if I just explain what I am doing? Maybe I'll just skip the reporting of the prior sales of the comps and just explain that I think the prior sales prices could be "misleading"
m2:
Hold the pickle, hold the lettuce....have it your way. Just ignore any assignment conditions you don't like, even if you certifiy that you are following them.
If I am free to ignore the instructions for the MC form, can I also ignore the guidance regarding the "house and 5 acre rule" if I just explain what I am doing? Maybe I'll just skip the reporting of the prior sales of the comps and just explain that I think the prior sales prices could be "misleading"
m2:
Hold the pickle, hold the lettuce....have it your way. Just ignore any assignment conditions you don't like, even if you certifiy that you are following them.
residentialguy
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Yes, you're free to do that. Now go...be free. :new_multi:
Doug DeMars
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Does anyone want to add comments on how stupid the Condo section of the MC form is???
residentialguy
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Yeah...those 2 sales in that analysis is so meaningful.
NC Appraising
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Mr. Wiley,
In several of your posts you state that it is inappropriate (Fannie does not want you to search that way) to search for data for the 1004MC using a poly search by a map.
I'm just curious on how you search?
If it's a suburban area, and the subject is in a subdivision, do you search by the subdivision name? I know in more urban, established "neighborhoods" the search is the neighborhood.
So my main question is in a surburban area where many subdivisions may exists in a given neighborhood, how do you search for data? My MLS only has "subdivision" names, and the neighborhood is more subjective.
The term "neighborhood" needs to be more clearly defined. I know some appraisers search by Town, subdivision, Zip code, MLS area's, or by a poly search.
Thanks.
In several of your posts you state that it is inappropriate (Fannie does not want you to search that way) to search for data for the 1004MC using a poly search by a map.
I'm just curious on how you search?
If it's a suburban area, and the subject is in a subdivision, do you search by the subdivision name? I know in more urban, established "neighborhoods" the search is the neighborhood.
So my main question is in a surburban area where many subdivisions may exists in a given neighborhood, how do you search for data? My MLS only has "subdivision" names, and the neighborhood is more subjective.
The term "neighborhood" needs to be more clearly defined. I know some appraisers search by Town, subdivision, Zip code, MLS area's, or by a poly search.
Thanks.
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DWiley
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????? I don't know what you mean by "poly search." I have said that Fannie does not want appraisers to expand search parameters just to have numbers to put in the grid at the top of the 1004MC.
If one is looking for sales in the same neighborhood, then searching by some type of locational parameters is required.
Last edited:
Mike Garrett RAA
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IN MY MARKET, we have numerous neighborhoods that consist of more than one subdivision. My brother, an SRA, has used the grade school as a search feature. He believes this is the one common factor that really defines the "neighborhood". Another well qualified appraiser and AQB certified USPAP instructor likes to draw the search area using the "polygon" mapping feature available on our MLS.
I have used both plus those defining things such as neighborhood name, subdivision name, or MLS marketing area identifier depending on the nature of the ..."neighborhood". Still conflicted about the selection of "comparable properties". My thoughts are the data, if available, for the grid portion of the 1004mc should be those properties a buyer for the subject property would consider when selecting a property to purchase.
Many years of sales experience as a real estate broker, managing broker, and real estate sales trainer covering 6 western states has convenienced me most buyers are pretty much style specific and also are driven by number of bedrooms, baths, location, and school districts. That is not to say buyers will not mix split levels (tri-level and four-level) in with a two story. But those wanting a ranch style are not nearly as flexible in their choices. The condo market is entirely a sub market and doesn't compete well with fee simple.
One thing I do know, the form was poorly thought out. It is way too inconsistent and often lacks sufficient number of sales data to be meaningful. The additional research required IN MY MARKET typically means an additional 30 to 60 minutes and that includes filling out the form. One good thing it does do is affording me the opportunity to take a better look at what is occurring such as LP/SP ratios, days on the market, and supply and demand factors. In most sub markets, ie., IN MY MARKET things have started to improve considerably. Of course we were never as hard hit as other markets primarily due to the heavy military influence here. Our number of foreclosures is and has been lower than the national average. Same is true for unemployment.
I have used both plus those defining things such as neighborhood name, subdivision name, or MLS marketing area identifier depending on the nature of the ..."neighborhood". Still conflicted about the selection of "comparable properties". My thoughts are the data, if available, for the grid portion of the 1004mc should be those properties a buyer for the subject property would consider when selecting a property to purchase.
Many years of sales experience as a real estate broker, managing broker, and real estate sales trainer covering 6 western states has convenienced me most buyers are pretty much style specific and also are driven by number of bedrooms, baths, location, and school districts. That is not to say buyers will not mix split levels (tri-level and four-level) in with a two story. But those wanting a ranch style are not nearly as flexible in their choices. The condo market is entirely a sub market and doesn't compete well with fee simple.
One thing I do know, the form was poorly thought out. It is way too inconsistent and often lacks sufficient number of sales data to be meaningful. The additional research required IN MY MARKET typically means an additional 30 to 60 minutes and that includes filling out the form. One good thing it does do is affording me the opportunity to take a better look at what is occurring such as LP/SP ratios, days on the market, and supply and demand factors. In most sub markets, ie., IN MY MARKET things have started to improve considerably. Of course we were never as hard hit as other markets primarily due to the heavy military influence here. Our number of foreclosures is and has been lower than the national average. Same is true for unemployment.
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