1004mc

[Joe Flacco]

Maybe you guys can be the undercard for the Chris Brown / Soulja Boy fight.

 

[residentialguy]

You did not answer the question. I asked if you were referring to me in your post #51. The question is simple and calls for a yes or no answer. Are you going with yes or with no?

yes, you have shown yourself to be one of them. I'm willing to be wrong, and I hope I am.

 

[Deleted member 128537]

Here is why "search criteria characterisitics often leads to misleading (IMHO) analysis if the 1004MC is trying to find similar properties to the subject (comparables). I recently did a home with a purchase price of 600,000 (Q2 construction). It was 2800sf and built in 1990. It was on 1.5 acres. I then did an initial search of all homes with from 1950 to 2016, from 2000sf to 3800sf on 0 to 5 acres. I came up with a comparable range of 90,000 to about 1,000,000! There were 10 comparable sales in that range. You simply can't tell me that home that sold for 90,000 (which Q5 construction) is comparable in any form or fashion to the house I was appraising. The problem in rural areas with the 1004MC is that the neighborhood is so diverse that using the search criteria method is nonsense. But I know that homes with this quality of construction are going to at least sell for 400,000 to 1,000,000. Why not put in that parameter to at least narrow the final comparable choices to at least a reasonable and credible number. The only way to take into consideration quality is by using some sort of sale price analysis. Now that's not what I do. I follow the "rules." But "rules" are often made for people who can't think (IMHO) without someone holding their hand.

 

[Joe Flacco]

The only thing that really matters is that they want us to support our market conditions opinions. As analysts we should be able to do that.

 

[Joe Flacco]

The key here is that the page 1 trends and mc form trends must match. But the trend opinions do not have to be a direct reflection of the data in the mc form.

I still think that the most valuable piece of data in the mc form is the sale price to list price ratio.

 

[Joe Flacco]

If they made it a requirement to support market conditions opinions but did not give us a form, most appraisers would freak out because they do not know how to do something without a form. So they gave us a form. Everybody knows it is not great. Including Fannie Mae. It is what it is. We just need to support market conditions opinions.

 

[J Grant]

Here is why "search criteria characterisitics often leads to misleading (IMHO) analysis if the 1004MC is trying to find similar properties to the subject (comparables). I recently did a home with a purchase price of 600,000 (Q2 construction). It was 2800sf and built in 1990. It was on 1.5 acres. I then did an initial search of all homes with from 1950 to 2016, from 2000sf to 3800sf on 0 to 5 acres. I came up with a comparable range of 90,000 to about 1,000,000! There were 10 comparable sales in that range. You simply can't tell me that home that sold for 90,000 (which Q5 construction) is comparable in any form or fashion to the house I was appraising. The problem in rural areas with the 1004MC is that the neighborhood is so diverse that using the search criteria method is nonsense. But I know that homes with this quality of construction are going to at least sell for 400,000 to 1,000,000. Why not put in that parameter to at least narrow the final comparable choices to at least a reasonable and credible number. The only way to take into consideration quality is by using some sort of sale price analysis. Now that's not what I do. I follow the "rules." But "rules" are often made for people who can't think (IMHO) without someone holding their hand.

There is nothing wrong with putting price parameters as a search. But it should not be the only search, and one should balance it by doing a search without price parameters. A house built in 1950 with no updates selling for 90k has nothing to do with your subject new Q2 subject, and a buyer spending 600k is not going to look at 200k nor 90k homes, (too low quality,) nor at million dollar homes ( they can't afford a million).

Their likely range might be be 500k-800k, and the better narrower range 500-700 k. Do multiple searches, such as for newer houses, by price, not b price, by land lot size, go further back in time and area distance. Keep searching and eliminating till you narrow it down to the best pool of comps for the subject. That pool of best comps is what goes on the MC form, the other data will be part of analysis.

 

[Joe Flacco]

The only wrong thing you can do with the MC form is trusting that it is giving you a accurate picture of trends. You must do additional analysis. You can't just look at the data in the MC form and start checking boxes.

 

[J Grant]

If they made it a requirement to support market conditions opinions but did not give us a form, most appraisers would freak out because they do not know how to do something without a form. So they gave us a form. Everybody knows it is not great. Including Fannie Mae. It is what it is. We just need to support market conditions opinions.

The form is a format for readers and users, not for appraisers (though we end up using it). Good appraisals and bad appraisals are done on forms ( and without forms one presumes). A form organizes the content in a way readers and users can make best sense of it and save time (One story mark a box or put in "1 story", no need for a sentence that "the subject is one story house."

 

[djd09]

What's uxreaaos? hahaha. Dopey does what dopey do.

I cannot analyze fraud or a propped up market.