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Market Conditions Addendum - Non-MLS Areas

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Kent Faver

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Aug 16, 2002
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Certified General Appraiser
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Texas
Ok, so a client calls and asks you to go work in "Non-MLS-Rural" County, USA. How the heck do you fill out the 1004MC?

Seriously - I can nail this form in my home county, I can probably do it for an adjoining county, but one county removed with no MLS? I don't see how you could fill this form out?
 

leelansford

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Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Ok, so a client calls and asks you to go work in "Non-MLS-Rural" County, USA. How the heck do you fill out the 1004MC?

Seriously - I can nail this form in my home county, I can probably do it for an adjoining county, but one county removed with no MLS? I don't see how you could fill this form out?

Interview each and every broker who serves the area?
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
1004 MC?

Do you mean the 1004 form or the 1004C form for Manufactured Housing?

In answer to your question, it's called research. I work exclusively in an area where there really are no viable MLS systems, it's too rural. I have a good working relationship with each of the county assessors in the area, I work an area of approximately ten counties covering Northwestern Minnesota. Each county has records of sales with buyer and sellers names, consideration paid, type of deed, the mortgage (if any) is recorded in the courthouse also. You can get buyers and sellers phone numbers, mortgage company and bank phone numbers also. The assessor typically has at least a minimum amount of information on all property in the county. You supplement that with a visual inspection of the subject and all comps and you use the phone to contact at least two parties to the transaction. Why two? Because one may not give you the whole truth!

You compile all your information and then are able to provide a supportable opinion of value.

I would caution you that the cost is more than what most AMC's will pay. Read some of Ray Millers posts, he's spot on on the fees required to make a living out in the rural areas.

Good Luck!
 

Kent Faver

Thread Starter
Sophomore Member
Joined
Aug 16, 2002
Professional Status
Certified General Appraiser
State
Texas
Interview each and every broker who serves the area?

LOL - I can barely get them to meet me with a key! You ask for comps and they give you that far away look.

But, good idea.
 

Tony V

Elite Member
Joined
Mar 29, 2005
Professional Status
Certified Residential Appraiser
State
New York
1004 MC?

Do you mean the 1004 form or the 1004C form for Manufactured Housing?

Stefan.....you missed the question......The 1004 MC is a new additional form added to the 1004 on any loan going through to Fannie/Freddie.....search 1004MC and you shold find several threads on the subject...
 
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PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
1004 MC?

Do you mean the 1004 form or the 1004C form for Manufactured Housing?

In answer to your question, it's called research. I work exclusively in an area where there really are no viable MLS systems, it's too rural. I have a good working relationship with each of the county assessors in the area, I work an area of approximately ten counties covering Northwestern Minnesota. Each county has records of sales with buyer and sellers names, consideration paid, type of deed, the mortgage (if any) is recorded in the courthouse also. You can get buyers and sellers phone numbers, mortgage company and bank phone numbers also. The assessor typically has at least a minimum amount of information on all property in the county. You supplement that with a visual inspection of the subject and all comps and you use the phone to contact at least two parties to the transaction. Why two? Because one may not give you the whole truth!

You compile all your information and then are able to provide a supportable opinion of value.

I would caution you that the cost is more than what most AMC's will pay. Read some of Ray Millers posts, he's spot on on the fees required to make a living out in the rural areas.

Good Luck!


Mr Olafson .. you will have some major problems completing the 1004MC I fear without a viable MLS system in your area. I would urge you to obtain a copy of the form and plan for how you will treat the requirement for its inclusion in your report which takes effect April 1, 2009 ......
 

Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
If you are interested in completing the 1004MC and do not want to deal w/ Excel, may I present www.1004-mc.com. The site imports the data export from your MLS, calculates the numbers and determines the numbers along w/ additional graphs that can help you comment on the results.

The site is currently offering the 1004MS Tool for free; afterwhich, the service will cost under $10/month. Not a large price to pay to save you hours of hassle filling out the 1004MC form.


I'm not very good with Excel, and I've been using this all week - it's excellent!


Kent -

In an area with no MLS at all, I think you can explain that the 1004MC can not be filled out. Or if you have something from public records which shows the number of sales by quarter, or the median or average sale price per quarter, maybe you could include only this info on the form, but I would call it quits at that point.
 

Joyce Potts

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Supporting Member
Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Instead of referring to it as 'filling out the form', why not refer to it as analyzing the market data, or lack thereof?
 

Lobo Fan

Elite Member
Joined
Nov 28, 2004
Professional Status
Certified Residential Appraiser
State
New Mexico
I have one on my desk right now with very little market data. There are a total of 7 closed sales in the past year within the area. Only two are maybe comps and they both suck big time.

How can you determine market trends with no data? Even expanding the search to an entire zip code only adds another 7-8 closed sales and brings in a dissimilar neighborhood with very different buyers.

I am grinding my teeth over this one.
 

Abester

Senior Member
Joined
Jun 12, 2003
Professional Status
Certified General Appraiser
State
Florida
why not refer to it as analyzing the market data, or lack thereof

One can consider the market without a quantitative inventory analysis. I've never talked to a residential property buyer that did a quantitative analysis. Inferred demand analysis may be all that is necessary. Pretty soon those clients are going to turn the 1004 into a self contained report with fundamental analyses for the low low price of $125.
 
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