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Sadie said:
I think you are doing it backwards. Don't you run your comparable search BEFORE you complete your appraisal? Then import that data into the form. If there is no or little data that meets your original search criteria, you simply explain it in the analysis segment. When the form first came out there was a 1/2 hour +/- video put out by FNMA that explained their expectations and requirements for the form. If this is the way you have been filling out the form, then it would behoove you to track down that video and watch it. I think its a poorly written form and kind of useless, but for a while we as residential appraisers are stuck with it.
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You know that the requirement to use the 1004MC form has been rescinded, don't you? We're talking about the data at the top of page 2 of the URAR. I typically run a comparable search to determine which comparables I'm going to go take pictures of as I'm in the field. And then towards the end of my appraisal process I run a larger comparable search including actives and pending's to report in the appropriate places on the form. The reason I do that is because mine typically goes back two years with some pretty graphs so I can attempt to display seasonal trends. No need to do that before I go out in the field.
 
Mike Ault said:
You know that the requirement to use the 1004MC form has been rescinded, don't you? We're talking about the data at the top of page 2 of the URAR. I typically run a comparable search to determine which comparables I'm going to go take pictures of as I'm in the field. And then towards the end of my appraisal process I run a larger comparable search including actives and pending's to report in the appropriate places on the form. The reason I do that is because mine typically goes back two years with some pretty graphs so I can attempt to display seasonal trends. No need to do that before I go out in the field.
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The 1004MC is no longer required by FNMA but FHA still requires it and many clients still want it. And why in the world would you leave out pendings and actives? Are they not an indication of the market? I think that to only include the pendings and actives to fill out a form is not a good way to analyze the market. The video (find it and watch it) says the information in the 1004 MC is the results of your comparable search. I have yet to see guidance from any reliable source that tells you only to considered sales in your comparable search.
 
Sadie said:
The 1004MC is no longer required by FNMA but FHA still requires it and many clients still want it. And why in the world would you leave out pendings and actives? Are they not an indication of the market? I think that to only include the pendings and actives to fill out a form is not a good way to analyze the market. The video (find it and watch it) says the information in the 1004 MC is the results of your comparable search. I have yet to see guidance from any reliable source that tells you only to considered sales in your comparable search.
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Who told you I leave out pending's and actives in my comparable search? I know my market well enough to know what is important and what is not. Like you, I've been doing this for 30 years now. I don't need a lecture on how "important" actives and pendings are. And I don't need someone telling me to "follow the guidelines" who can't quote them. The below graph is what I typically include in 99% of my reports to supplement my market research with. It is drawn from the data set used to populate the 1004 MC. It graphs two years of activity for every metric that the 1004 MC attempts to analyze. This "reporting" of market activity is typically done after I return from my inspection. The two year trends analyzed includes pending's and actives (and canceled and expired), how about you?
1655748927719.png
 
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Mike Ault said:
Who told you I leave out pending's and actives in my comparable search? I know my market well enough to know what is important and what is not. Like you, I've been doing this for 30 years now. I don't need a lecture on how "important" actives and pendings are. And I don't need someone telling me to "follow the guidelines" who can't quote them. The below graph is what I typically include in 99% of my reports to supplement my market research with. The two year trends analyzed includes pending's and actives (and canceled and expired), how about you?
View attachment 64096
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You told me you leave out the actives and pendings until you need them to fill out the form at the top of page 2. "I typically run a comparable search to determine which comparables I'm going to go take pictures of as I'm in the field. And then towards the end of my appraisal process I run a larger comparable search including actives and pending's to report in the appropriate places on the form." You are kind of irritated at me because I didn't quote the guidelines for you. Can you provide me with the guidelines you follow?
 
Sadie said:
You told me you leave out the actives and pendings until you need them to fill out the form at the top of page 2. "I typically run a comparable search to determine which comparables I'm going to go take pictures of as I'm in the field. And then towards the end of my appraisal process I run a larger comparable search including actives and pending's to report in the appropriate places on the form." You are kind of irritated at me because I didn't quote the guidelines for you. Can you provide me with the guidelines you follow?
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You "liked" my first post, what changed your mind? I am irritated at you because you don't seem to know the difference between "appraising" and "reporting the appraisal". If actives and pending's are important to the formation of my opinion of value or FHA "changing market guidance" then they are recited. Actives and pending's haven't closed yet and as such those prices are simply conjecture which should never be "weighted" in a valuation. I prefer to support my values with actual verifiable data, preferably with sales that are closed as of the effective date of the appraisal. Listings and pending's are important for appraisers that like to demonstrate possible future value, not present value. I didn't tell everybody to "follow the guidelines" so I'll leave the posting of those to those that did.
 
Mike Ault said:
You "liked" my first post, what changed your mind? I am irritated at you because you don't seem to know the difference between "appraising" and "reporting the appraisal". If actives and pending's are important to the formation of my opinion of value or FHA "changing market guidance" then they are recited. Actives and pending's haven't closed yet and as such those prices are simply conjecture which should never be "weighted" in a valuation. I prefer to support my values with actual verifiable data, preferably with sales that are closed as of the effective date of the appraisal. Listings and pending's are important for appraisers that like to demonstrate possible future value, not present value. I didn't tell everybody to "follow the guidelines" so I'll leave the posting of those to those that did.
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I am not sure what you are getting at. I do think you know that active and pending sales are an indication of the current market, and of course cannot be relied upon for a credible indication of the Market Value of the subject for the simple reason of what they are, active and pending sales. But they are an indication of the market in general, which you do need to understand. They can tell you a lot about the market. And typically, your client will want to know about them. And the whole appraisal vs appraisal report is due to the thread being about a form, which is usually integrated into an appraisal report.
 
Mike Ault said:
You "liked" my first post, what changed your mind? I am irritated at you because you don't seem to know the difference between "appraising" and "reporting the appraisal". If actives and pending's are important to the formation of my opinion of value or FHA "changing market guidance" then they are recited. Actives and pending's haven't closed yet and as such those prices are simply conjecture which should never be "weighted" in a valuation. I prefer to support my values with actual verifiable data, preferably with sales that are closed as of the effective date of the appraisal. Listings and pending's are important for appraisers that like to demonstrate possible future value, not present value. I didn't tell everybody to "follow the guidelines" so I'll leave the posting of those to those that did.
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Mike you may want to think this through a little bit more maybe you have been doing it this way for 30 years but maybe its time to realize this not 30 years ago when only one box was allowed to be checked and that was "Stable" I have no idea who in a increasing or declining environment you dont also run Listings and Pendings. Right now we are starting to se new pendings and Listings at lower prices for the first time in 8 years and so its required we look at these. When I was doing Big Chaser Bank default Reviews in 2008-2009 almost all appraisers had no support for their increasing price adjustments and in 2010 the same when it was declining.
 
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