Exposure Time

[residentialguy]

Low yearly sales (data) can produce just as misleading of results on a 10 year trend as it can on a 1 year trend.

exactly. you just solidified my argument. and why aren't for sales by owners part of the market. what just ignore them. i would argue that only using MLS listings is not the whole market.

FSBOs are on the MLS in MN and their data is used by me.

Now, how did YOU consider them when choosing comps if you did not have access to them?

it is misleading because i don't have access information for sale by owner.

If the 1004MC is misleading because you don't have access information for sale by owner, then surly your SCA is just as misleading

 

[Rich Heyn]

Low yearly sales (data) can produce just as misleading of results on a 10 year trend as it can on a 1 year trend.

Misleading to whom?

 

[Fritz in NY]

How can you utilize FSBO's even if listed in MLS? Who entered the data? Are you subtracting a Realtor fee as a seller concession? Are there interior photos in MLS to judge it's condition/quality? I think I'd rather walk the plank.....
Yes, the MC report is a farce in some reports when there are only 3-5 sales and 2-3 listings in an entire 12 month period. Not enough data to make a decisive comment or judgement. It was designed to be read by a computer???? That makes a lot of sence now.

 

[djd09]

Misleading to whom?

is it misleading to report mc as declining on a one year trend when in fact the market has increased on a two year trend. ?

 

[residentialguy]

Yes, the MC report is a farce in some reports when there are only 3-5 sales and 2-3 listings in an entire 12 month period. Not enough data to make a decisive comment or judgement. It was designed to be read by a computer???? That makes a lot of sence now.

True, no specific trends can be made, but I don't see it as a farce. This is valuable in that it is supporting my actions to extend time frame and expanding the search area and using comps that aren't "perfect matched pairs" in the SCA. It shows the client the market that you're dealing with. :icon_idea:

 

[residentialguy]

is it misleading to report mc as declining on a one year trend when in fact the market has increased on a two year trend. ?

No. Why would it?

Again, it's about what YOU decide to report. Nowhere does it say to only report 12 mos. I use 1/2 dozens trend analyzes in my reports, not just the 12 mo comp. If the appraiser decides to report only the 1004MC when other trends are necessary, then the appraiser is guilty of misleading, not the MC form.

 

[Rich Heyn]

is it misleading to report mc as declining on a one year trend when in fact the market has increased on a two year trend. ?

Your client asks for one unit housing trends for the last year but does not preclude you from discussing market conditions prior to that period, if you think it's significant.

Again, misleading to whom?

 

[djd09]

Your client asks for one unit housing trends for the last year but does not preclude you from discussing market conditions prior to that period, if you think it's significant.

Again, misleading to whom?

I guess i could do a market anaylsis for every year since the beginging of housing in america. But that seems to be a differnt assignment type. My job is to estimate market value on a specific date not to estimate market conditions which may or may not be relevant to market value.
It is misleading to ME. and since i am the author of the report and the assignment conditions could lead to misleading results i probaly should withdraw from most of my assignments. but i do have a family to feed so a disclaimer noting the possible misleading results is written in all appraisals i perform for gse.

 

[residentialguy]

When it supports your actions to extend time frame and expanding the search area and using comps that aren't "perfect matched pairs" in the SCA, plus shows the client the market that you're dealing with....how is that misleading again???

 

[hastalavista]

... so a disclaimer noting the possible misleading results is written in all appraisals i perform for gse.

I think there is an alternative; one which many (including myself) do.

It is a rare occasion when I can confidently rely 100% on the 1004mc to conclude market conditions. So, I expand the analysis and I consider the expanded analysis along with the 1004mc results to form my conclusions regarding market conditions.
Now, there are many times (and, it is the majority of times) that the 1004mc analysis is consistent with my expanded analysis. It is just that there is insufficient data in the 1004mc by itself for me to conclude the results are sufficiently credible.
Likewise, when the results of my expanded analysis are different than the limited indications of the 1004mc, I need to make a decision: what do I conclude and why? I have no problem concluding a result that is different from what the limited data in the 1004mc may indicate if the expanded analysis provides the necessary confidence level to do so.

I don't see how an appraiser can "disclaim away" misleading results?
I do see how an appraiser can complete the necessary analysis so that the results are not misleading.

Are you sure you don't do additional analysis when needed, so your results are not "misleading" (at least, in your mind)?