Form 1004MC for a lake front home?

[Bill Tompkins]

I am appraising a lake front home located in a "rustic" area. It's not rural. There is a supermarket 10 minutes away. Comps. are scarce but there are some sales on the lake that I am using. In my opinion, there is not enough data available to complete form 1004MC. What would be a good comment to include in the report to support my opinion that 1004MC is not applicable? Thanks.

 

[Meandering]

There is insufficient data in the above grid which requires comparables in the subject neighborhood only. Please see the narrative addenda for the market conditions trends and analysis.

 

[Lee Lansford]

I am appraising a lake front home located in a "rustic" area. It's not rural. There is a supermarket 10 minutes away. Comps. are scarce but there are some sales on the lake that I am using. In my opinion, there is not enough data available to complete form 1004MC. What would be a good comment to include in the report to support my opinion that 1004MC is not applicable? Thanks.

It is applicable but it may not yield meaningful results.

The lack of data populating the various fields lends support as to why you have to go outside of the neighborhood for relevant (as best exists) data OR supports the need to go back in time within the neighborhood.

 

[Scott R Marshall]

Fill in what your have and then make a statement that the lack of data makes the determination of trends difficult, if even possible, with all data based on differences between the 7 to 12 month period and that over the last 6 months.

I would then provide a more extensive market analysis statement (what was performed for page 1) within the report, with that analysis being more of the subjects macro-market, which would include properties not comparable to the subject, with assumptions made that the trends found within the macro-market extended to the subjects micro-market.

 

[Meandering]

I don't like the micro-macro market thing.

Might just be me.

But I prefer things like;

The subject and it's comparables and competition are outliners to the dataset when considering medians within the subject's neighborhood/market area. There are many fewer lakefront homes in the data set when compared to the universe of data. Lakefront homes typically command value premiums for their location, which puts them in the higher range of the prices when considering historic sales. The subject and its comparables and competition are larger than/smaller than/older than/newer than, the medians of the overall data set used to produce the market trends analysis, or are similar to the medians in the market trends analysis.

That's why the opinion of value for the subject is higher than the predominate price in the subject's neighborhood.

I hate CYA crap.


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[ctapraser]

I don't like the micro-macro market thing.

Might just be me.

But I prefer things like;

The subject and it's comparables and competition are outliners to the dataset when considering medians within the subject's neighborhood/market area. There are many fewer lakefront homes in the data set when compared to the universe of data. Lakefront homes typically command value premiums for their location, which puts them in the higher range of the prices when considering historic sales. The subject and its comparables and competition are larger than/smaller than/older than/newer than, the medians of the overall data set used to produce the market trends analysis, or are similar to the medians in the market trends analysis.

That's why the opinion of value for the subject is higher than the predominate price in the subject's neighborhood.

I hate CYA crap.


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Is this like jumbo shrimp?

 

[hastalavista]

I'm with Lee.

The 1004MC gets filled out with whatever appropraite data is available. Lack of similar sales (which would be considered comparables) to use in the 1004MC is a meaningful communication in itself: it tells the intended user that there are not enough similar sales that fit the time constraints (12-months) of the 1004MC within the subject's defined market, and therefore I (as the appraiser) am either going to have to
A. Go further than 12-months back in time, or
B. Go to a competing market.

Obviously, if the 1004MC driven data-collection process yields few results, then the 1004MC's function as providing trend indications for the sub-market isn't reliable. I would supplement the data with other sources (macro, which Marion doesn't agree with, or with trends form competing neighborhoods which are, hopefully, data rich).

The 1004MC gets filled out one-way or another. The sale/active/expired-withdrawn data points may be few or none. That's meaningful information.
The trend conclusions also need to be done: if the data from the 1004MC collection process is insufficient, then supplement it with what you think is the best proxy.


Good luck!

 

[Terrel L. Shields]

Lie... it just makes things easier (not really)

 

[Craig in Oregon]

Do the best you can with what little you have and don't agonize over it. 1004MC works in Orange County large subdivisions, results vary elsewhere.

 

[Restrain]

We have a default that states that the MC may not provide meaningful data. Check the forum for various default statements.