1004mc

[hastalavista]

Comparables can exist anywhere. You can have comparables in another town.

True... but if you go outside the competitive market to get comps, then you are presumably going to a competing market. The 1004mc analyzes the competitive market (or neighborhood as they define it).
This is why one shouldn't simply expand the boundaries to capture sales to use as comparables.

 

[hastalavista]

what sources are those that say that the "competitive market" is the same thing as "neighborhood"? The AI Dict spells out the definition of Neighborhood.

I'm surprised you asking me that, since I include both definitions in my reports?
(See post #196)

 

[residentialguy]

Dennis, you need to take off your teacher's hat for a minute

The Dictionary of Real Estate Appraisal (4th ed.) defines the term "neighborhood" as:
A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises.
The neighborhood boundaries are: XXXXX

The competitive market is where similar properties compete against one another for the same buyer pool. "Competitive Market" is defined as:
The geographic or locational delineation of the market for a specific category of real estate, i.e., the area in which alternative, similar properties effectively compete with the subject property in the minds of probable, potential purchasers and users.
The competitive market boundaries are: XXXXX

Now, FNMA form says "neighborhood"...you have it's definition.
You also show the definition of "Competitive Market" . They are 2 different terms meaning 2 different things.

Now, I'll give you $100 for every time the 1004 and the 1004MC form asks for the subject's "competitive market" and you give me $100 every time they ask for the subject's "Neighborhood"

deal???

 

[residentialguy]

Once this is settled, I think I might be able to afford to fly in for your class

 

[hastalavista]

Dennis, you need to take off your teacher's hat for a minute


Now, FNMA form says "neighborhood"...you have it's definition.
You also show the definition of "Competitive Market" . They are 2 different terms meaning 2 different things.

Now, I'll give you $100 for every time the 1004 and the 1004MC form asks for the subject's "competitive market" and you give me $100 every time they ask for the subject's "Neighborhood"

deal???

That is a sucker's bet and you'd win.

But it is a bet that isn't relevant to the issue at hand: the form's use of the term "neighborhood" is not technically correct for the information they expect. I identify the correct term (maybe they'll thank me some day) and provide what the information they expect.

All's well.

I'm going to borrow one of JGrant's lines... Gotta run!
(have a class to go to!)

 

[residentialguy]

That is a sucker's bet and you'd win.

But it is a bet that isn't relevant to the issue at hand: the form's use of the term "neighborhood" is not technically correct for the information they expect. I identify the correct term (maybe they'll thank me some day) and provide what the information they expect.

All's well.

I'm going to borrow one of JGrant's lines... Gotta run!
(have a class to go to!)

lol..I have done that with assignments from lenders where I identify the correct term of "Liquidation Value" when they requested "Market Value" on a REO I completely understand where you are coming from, and I applaud you for standing up to their bad forms.

p.s. I'll settle for 50/50 on an round trip ticket from MPLS to LAX

 

[Fernando]

When 1004MC came out, I really looked for comparables very similar to subject in areas and nearby areas buyers would look into. After taking the Appraisal Institute class (very disappointed), I saw how my peers did their analysis which was not satisfactory to me. I realize that I'm not in business of doing a thorough very detail analysis which I probably could make into thesis. Now I do what my peers do but I know what limitations with the data I'd use.
As a statistic teacher said "If you can show it with statistics then the answer can be right" and it's hard for client/lender to dispute it.