1004MC Question

[Restrain]

Analysis of the overall market would include all sales (low, high, median prices, REO sales vs arms-length sales, inventory levels, etc). The 1004MC includes those sales that Would Be Comparable. For example, you are doing a 3500 sf home. Your market analysis may have 1200 sf homes to 5500 sf homes, but the MC would likely have 3100 sf to 4000 sf homes of similar age, style and design.

 

[Craig in Oregon]

Metapp,

Good discussion here.

The cancelled, withdrawn and expireds are searched for relevant indicators and if one (or more) of those is a good match it will end up in the report as a photo and caption indicator, not on grid as there is no sale price, only asking price which may be way out of line; also, the seller motivation and circumstances of a listing come into question such as a listing cancelled which then becomes a short sale or REO later on.

This is what I mean by inconclusive, there is no settled price to adjust against. But as you do could certainly be reported though migh bear little or no weight. Therefore these are left out of the number count for the 1004MC. Even though these might become shadow inventory of which there are many (but not as many as was the case 2 years ago) in most markets now.

You mention a bifucated market area with older OR new/newer homes; I would leave out of the 1004MC and also at top of page 2 1004 the properties not a reasonably good match for your subject as to age even though a buyer might consider either/or in the specific school area. Can be explained easily enough in market area comments why you did this.

ResGuy mentions trending, I get my trends from a longer look at listing prices, supply,
demand, SP as % of LP, and also days on market, not from 1004MC stats, such as they are. Because as mentioned these end up being too small a sample as these are "comparables only". That's my take.

 

[residentialguy]

But as you do could certainly be reported though migh bear little or no weight. Therefore these are left out of the number count for the 1004MC. Even though these might become shadow inventory of which there are many (but not as many as was the case 2 years ago) in most markets now.

that is incorrect, Craig. It is in the 1004MC active listings count when they were active. At one time these were active, and if they were active on the last day of the 3 time periods of the MC, then it is shown under the actives. What you are saying of expired sales can be said of any active listing. If it was active the last day of the prior 7th month, then it should be on the MC as an active on the 7-12 months section.

 

[Meandering]

Your expired, withdrawn and canceled sales would only be on the 1004MC if they were active on the last day of the period. That is the form instructions from Fannie. If they were not active on that day, you don't include them.

Look at it like this, at some point they were a choice within the market area. buyers did not choose to buy them, sellers decided not to continue to try and sell them, therefore they are not relevant to the 1004MC as they are not competition as of the three dates the data is requested for, and they are not comparables as they did not sell within the year.

 

[residentialguy]

Your expired, withdrawn and canceled sales would only be on the 1004MC if they were active on the last day of the period. That is the form instructions from Fannie. If they were not active on that day, you don't include them.

Marion, if they weren't active at the time, they wouldn't show up on the MC. MC software only extracts it from your data if it was active at that time...same with sales. No one has the time to go through each sale and input it one by one.

I run everything that has been on the market for the last 365 days and dump it on there. The software does the rest.

 

[Mr Rex]

Marion, if they weren't active at the time, they wouldn't show up on the MC. MC software only extracts it from your data if it was active at that time...same with sales. No one has the time to go through each sale and input it one by one.

I run everything that has been on the market for the last 365 days and dump it on there. The software does the rest.

If your MC software is set up correctly. Many offered within their respective MLS systems are suspect. Some do not support anything not currently active.

 

[residentialguy]

Then how could you enter the prior active listings?????



I know....time for new software that doesn't suck

 

[Mr Rex]

N/A for 3-6 and 6-12.

 

[residentialguy]

If that's the case and can't get the current market activity on a prior day, I hope they turn down retro appraisals

 

[Mr Rex]

Even the MLS software that does provide the 3-6 and 6-12 will not go beyond 12 months prior for active, pending, etc retrospectively.