No listings, top of page 2

[Dublin ohio]

No listings found between $0-$999,999 would at least inform the reader of the report that you searched "something"

If that is what it said at the top of page 2. I would do the same. But it doesn't. I can't help the way it is worded at the top of page 2. It says what it says. It does not say There are "x" comparable sales using a price range of "?" to "?"

 

[Mike Ault]

No extra trouble to include the 1004MC, so my work flow almost never changes. But I don't think there is any broadly accepted reason to criticize another for putting all zeros. As stated, I have had requests for that every time I exclude them. Nor do I make any effort to narrowly or specifically define comparability. While I agree with the notion, there are unlikely to be more than one in agreement with each possible definition. If an industry approaching 100 years old has defined it yet, I don't plan to be first.

I attempted to explain my reasoning and I was met with a "that makes absolutely no sense" response. The fact that there is no "broadly accepted reason" to criticize someone else's method works both ways.

 

[Mike Ault]

If that is what it said at the top of page 2. I would do the same. But it doesn't. I can't help the way it is worded at the top of page 2. It says what it says. It does not say There are "x" comparable sales using a price range of "?" to "?"

Actually, it says "ranging in price". What other metric do you think they were concerned with?

 

[Dublin ohio]

Actually, it says "ranging in price". What other metric do you think they were concerned with?

If they wanted price range. One would think that is what they would say. I'm done. You do it your way. I'll do it my way. Obviously the users don't care. Since I have never been questioned using zeroes. I assume you have never been questioned using zero listings but including a range of prices.

 

[TerryRohrer]

I attempted to explain my reasoning and I was met with a "that makes absolutely no sense" response. The fact that there is no "broadly accepted reason" to criticize someone else's method works both ways.

The only issue I have with your approach is the reliance on price as an element of comparability. Nor does FNMA hint at it in their comp selection discussion.

B4-1.3-08, Comparable Sales (09/04/2024)

This topic contains information on selection of comparable sales, including:

selling-guide.fanniemae.com

 

[Dublin ohio]

I attempted to explain my reasoning and I was met with a "that makes absolutely no sense" response. The fact that there is no "broadly accepted reason" to criticize someone else's method works both ways.

Your post did not provide any "reasoning". Just an opinion. Or if you prefer. An interpretation.

 

[Mike Ault]

If they wanted price range. One would think that is what they would say. I'm done. You do it your way. I'll do it my way. Obviously the users don't care. Since I have never been questioned using zeroes. I assume you have never been questioned using zero listings but including a range of prices.

I have always done precisely as I described and I have never been questioned. Not once. And I never retired the 1004MC, I use it in virtually all appraisals I've performed since its inception. I supplement with further "market area" data and analysis and I don't expand my neighborhood to include other market areas as per Fannie Mae guidelines. I am quite content with "data not available" in every field of the 1004MC. In that case however, I always place a "price criteria" in the fields under discussion.

 

[Mike Ault]

The only issue I have with your approach is the reliance on price as an element of comparability. Nor does FNMA hint at it in their comp selection discussion.

B4-1.3-08, Comparable Sales (09/04/2024)

This topic contains information on selection of comparable sales, including:

selling-guide.fanniemae.com

If you examine your subject & don't know your market area well enough narrow it down to within $500,000 ± for your initial data pool then you have worse problems than filling out the form properly.

 

[Mike Ault]

Your post did not provide any "reasoning". Just an opinion. Or if you prefer. An interpretation.

Does it "make sense" now?

 

[TerryRohrer]

If you examine your subject & don't know your market area well enough narrow it down to within $500,000 ± for your initial data pool then you have worse problems than filling out the form properly.

Cute! So you think there is useful information in stating that there are x number of listings within plus or minus $500k of your $150k subject? I don't.

You cannot search by a price range around your subject value until you conclude the value of the subject. I reach that conclusion at the end of the appraisal and reporting processes. I dont start with that conclusion and build to it.