New market analysis changes.

[TerryRohrer]

From post #13, https://appraisersforum.com/forums/threads/feb-4th-gse-requirements.239365/page-2#post-3456436

This has been in USPAP for a very long time

View attachment 95316

Given that market analysis has been a requirement, there should be no need to buy anything new.
The change is that the report must now contain that analysis.

The diagram included in the announcement was for illustration and discussion of the topic. There is no requirement to include a similar illustration. The requirement is to include the analysis that was done.

 

[Fernando]

Delayed deadline-

25-07: Reminder: Fannie Mae Appraisal Time Adjustment Requirements | PCG

Announcement 25-07: This is a reminder regarding Fannie Mae's appraisal requirements, effective for appraisals dated on or after March 1, 2025.

corr.pennymac.com

I thought all appraisers were doing a thorough analysis.
For Fannie to state clearly what should be done indicates many appraisers weren't doing it right or didn't know what they were doing.

 

[The Bob]

I can't believe there are appraiser's that think this is some new requirement.
How the h*ll were you determining if a market was stable, rising, or declining before?

 

[ZZGAMAZZ]

So why are they saying we have to have this detailed market analysis and use an adjustment for the month the comparable was sold? Is that overkill or do we have to do it that way now? I use Titan Analytics and a custom spreadsheet for my closed sales analysis. However, those don't break down what the increase/decrease is for each month.

IMO the baseline verbiage that references "the month the comparable was sold" is misleading and also incorrect because the contract date rate rather than the sale date is the correct metric...

 

[ZZGAMAZZ]

If MC is used, appraiser needs to be consistent.
MC usually consider 12 month trend.
In main report, I would consider more recent trend but if different and not clear with time trend, reviewers will always assume 12 month trend.

Page 1 Neighborhood Trends is indeed based upon a 12-month analysis as far as I am aware, although IMO more recent sales should be prioritized in the industry formula applied to determine the "predominant" value...

 

[Surf Cat]

I can't believe there are appraiser's that think this is some new requirement.
How the h*ll were you determining if a market was stable, rising, or declining before?

Alakazam! Stable!

 

[Fernando]

Page 1 Neighborhood Trends is indeed based upon a 12-month analysis as far as I am aware, although IMO more recent sales should be prioritized in the industry formula applied to determine the "predominant" value...

In an increasing trend, 12 month analysis forces us to use the median during that period instead of more recent median price. And reviewers want appraisers to comment if below or above median price in area.

 

[gorillakimchi]

I’d like to see a real example of how this appears in a report.
It’s frustrating that we’re putting in more work while fees have either remained the same or even decreased compared to 10 years ago

 

[ZZGAMAZZ]

In an increasing trend, 12 month analysis forces us to use the median during that period instead of more recent median price. And reviewers want appraisers to comment if below or above median price in area.

yes indeed. however, variance between the predominant neighborhood price and OV of the subject inevitably is easy to determine--subject is older or newer than the PV, bigger or smaller, with condition superior or inferior. Alternatively, "...the industry formula to determine the predominant value as based upon 12-month market activity during a year of continually-increasing values inevitably skews the results downwards towards the median value. Variance between the OV and a pending contract price should be relatively easy to define, either by describing factors that affect the former or the latter. by interviewing listing and selling agents if the pricing strategy isn't obvious as based upon published MLS data. Variance between the OV and the previous selling price usually is almost as straightforward, despite the temptation to say what one really feels about the need to compare a tangible value [OV] and the prior selling price--often affected by that appraiser's tendancy to support the contract price even if doing so is a sham [and also an opportunity to market one's services by offering to provide a retrospective appraisal if the client really wants an explanation]. LOL but really!!!

 

[Tom D]

I’d like to see a real example of how this appears in a report.

Dude, only looking at your report, how did you figure out the market trend. Ask yourself, if i was an underwriter what what help me know what you did, or say, about something important in this report, Did the appraiser do more than just pull out a thought out of their as*.

Just the MLS alone, and realtors association web site news has a ton of market data with graphs and paragraphs of market info. In some ways this information is better protection for you, just being in the appraisal instead of your work file. It's called visual aids to simplify it, easier than explaining a graph verbally.
Sorry, but anybody asking for examples seems like a lazy appraiser. I got a tab on my MLS that says "market" and r.e. news articles every month. Go do some hard work and find it. But then i've seen a lot of poorly done appraisals. I wanna give you a dope slap to the head, i know your smarter.

In the old non MLS days we only had census tract data which obviously can be old, so there was little to show. There was nothing, no info that wasn't already outdated for the report.