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One-unit Property Value Trend Reflecting Only Median Comparable Sale Price From 1004mc

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jackimoya

Sophomore Member
Joined
Aug 13, 2008
Professional Status
Certified Residential Appraiser
State
California
A review appraiser has told me that the one-unit property value trend MUST MATCH the Median Comparable Sale Price trend on the 1004MC form regardless of what the other 'overall trend' properties indicate. I'm looking at Fannie Mae's guidelines to see if I can find where they state this. Can anyone confirm if this is true, or not?
 

ucbruin

Elite Member
Joined
Mar 11, 2014
Professional Status
Certified Residential Appraiser
State
Massachusetts
I don't know if I've been completing the MC form incorrectly (I probably am) but mine rarely match.

How is good old Fullerton these days?
 

Mike Kennedy

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Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Link not operational - see below >>>>>
 
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Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
  1. 2014
  2. New Fannie Appraisal FAQs including 1004MC -...
    appraisaltoday.com/2014/09/24/new-fannie-appraisal-f...
    Sep 23, 2014 ... New Fannie FAQs – Appraisal and Property Related Frequently ... in the One- Unit Housing Trends section of the appraisal report (Form 1004)? Yes. The conclusions regarding trends that are obtained from the Form 1004MC must be ... or high sales can distort the median price and indicate a trend that is ...
 
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Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Appraisal and Property Related Frequently Asked Questions (FAQs)
February 12, 2016
Q17.
Are the trends that are reported on the Market Conditions Addendum to the Appraisal Report (Form 1004MC) the same trends that are to be reported in the One-
Unit Housing Trends section of the appraisal report (Form 1004)?
Yes.

The conclusions regarding trends that are obtained from the Form 1004MC must be the same trends reported in the Neighborhood trends section of the Form
1004.
The information reported on both forms must be consistent to provide the lender with a clear and accurate understanding of the market trends and conditions present in the subject neighborhood, based on properties that are considered competitive with the subject being appraised.

https://www.fanniemae.com/content/FAQ/appraisal-property-report-faqs.pdf
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I'm not that good.
 

Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
Yay Fullerton!
Home of G&L Guitars :dancefool:
Wiki
 
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jackimoya

Sophomore Member
Joined
Aug 13, 2008
Professional Status
Certified Residential Appraiser
State
California
I understand that the trends on the 1004MC form must be the same trends shown in the neighborhood section. The 1004MC form quite often shows conflicting trends and I'm trying to verify that the Median Comparable Sale Price is to be used for the One-Unit Housing Property Value Trend with no regard to any of the other parameters on the 1004MC form, like Median Comparable List Price?

If the Median Comparable Sale Price trend shows increasing property values and the Median Comparable List Price trend shows stable or declining trends, the increasing box in the neighborhood section should still be checked? Per this reviewer, the answer is yes. What does Fannie Mae say?
 

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
the 1004mc is a small subset of the neighborhood. if you use a large range with few sales it can be skewed to where more of sales fall within that range during that time period, the highs & lows.. that has nothing to do with overall market trend. it has to do with where in the range do the high/low sales fall, especially if you have few of them. you would see this if you did every quarter separately. the issue might be that your range is to big, or to small, maybe to high or to low.. with seasonal selling that range is also skewed. the problem likely is that you are doing the range wrong. i hate to say this, but the 1004mc is a yoyo that you can make to look the way it needs to look, and still be very correct.

the reviewer may be technically right, but doesn't understand that the 1004 cannot be accurate most of the time when there are few sales. maybe you need to write a better general comment about the 1004mc being skewed by a lack of data, the range, or seasonal issues.
 
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