"Predominant 1-Unit Housing Value"

[Carnivore]

----------------------
Oh Oh. A major disconnect exists . . . and whenever I encounter that scenario inevitably I'm wrong. (No denial here.)

Point being is that my understanding is that--although I don't agree with the premise--the "neighborhood" should be comprised only of competing properties rather than the entire 'hood.

[Consequently, my page 1 "neighborhood" data is based upon data reported in the 1004MC, as well as the top of page 2.]

If so, your comments about the disparity of neighborhood improvements--condition notwithstand--does not pertain.

Please advise.

OK, In my post I cited and Quoted the FNMA Selling guide. Where is the disconnect? Is it because we are specifically talking about the 1004mc?

Here: https://selling-guide.fanniemae.com...htm#Price.20Range.20and.20Predominant.20Price

 

[ZZGAMAZZ]

OK, In my post I cited and Quoted the FNMA Selling guide. Where is the disconnect? Is it because we are specifically talking about the 1004mc?

Here: https://selling-guide.fanniemae.com...htm#Price.20Range.20and.20Predominant.20Price

I think you referenced one of my previous posts before I realized which of the page 1 cells are neighborhood and which are competing properties.

 

[LuckyDuck]

Im so glad Im not the only one that was confused by this. ZZGAMAZZ, I think you're right, I WILL be using this as one of my main learning tools!
I just edited my post from last night to include the same link Carnivore posted, which is dated Dec 16th 2020. Not sure if that section in particular was updated at all from the last publishing date.
Not to be redundant but it really helps me to spell it out after so much confusion, and also allows for you all to easily correct if Im wrong.
Pg 1

NEIGHBORHOOD CHARACTERISTICS, Boundaries, Description, and PRESENT LAND USE would be ALL properties, no matter the type or use.
ONE UNIT HOUSING TRENDS section (COMPS) is what would match the TOP OF Pg 2 and 1004MC.
ONE UNIT HOUSING is specific to property type.
Market conditions refers to entire neighborhood. However, IF the neighborhood is segmented or bifurcated, focus on the subject's market segment (soooo....property type?).

Link to other AF thread:

Does Your Neighborhood Data On P 1 And Top Of P 2 Match?

mine does. they both reference "neighborhood" or do you consider p 1 neighborhood as "market area" and p 2 neighborhood as its subdivision?

appraisersforum.com

 

[ZZGAMAZZ]

Im so glad Im not the only one that was confused by this. ZZGAMAZZ, I think you're right, I WILL be using this as one of my main learning tools!
I just edited my post from last night to include the same link Carnivore posted, which is dated Dec 16th 2020. Not sure if that section in particular was updated at all from the last publishing date.
Not to be redundant but it really helps me to spell it out after so much confusion, and also allows for you all to easily correct if Im wrong.
Pg 1

NEIGHBORHOOD CHARACTERISTICS, Boundaries, Description, and PRESENT LAND USE would be ALL properties, no matter the type or use.
ONE UNIT HOUSING TRENDS section (COMPS) is what would match the TOP OF Pg 2 and 1004MC.
ONE UNIT HOUSING is specific to property type.
Market conditions refers to entire neighborhood. However, IF the neighborhood is segmented or bifurcated, focus on the subject's market segment (soooo....property type?).

Link to other AF thread:

Does Your Neighborhood Data On P 1 And Top Of P 2 Match?

mine does. they both reference "neighborhood" or do you consider p 1 neighborhood as "market area" and p 2 neighborhood as its subdivision?

appraisersforum.com

--------------
I don't agree with your caveat that " . . . if the neighborhood is segmented . . . " because doing so would result in the segment that best reflects the subject market niche reflecting competing properties reported in the 1004MC, rather than the overall neighborhood, bi- or tri-furcated as it might be, although that distinction would be addressed in the Market Analysis narrative addendum.

 

[LuckyDuck]

--------------
I don't agree with your caveat that " . . . if the neighborhood is segmented . . . " because doing so would result in the segment that best reflects the subject market niche reflecting competing properties reported in the 1004MC, rather than the overall neighborhood, bi- or tri-furcated as it might be, although that distinction would be addressed in the Market Analysis narrative addendum.

Hmmm interesting point! Once again, still trying to figure this all out. So, for example, if the neighborhood is a true mix of SFR, 2-4 unit, and condos you would still use them all rather than focus on, lets say, SFR?

 

[TMG]

If my value is higher or lower than the predominant, I put in a comment explaining why. i.e. The subject could be well above the predominant value, due to being newer and larger than average, however, it may not be overbuilt or atypical.

 

[ZZGAMAZZ]

If my value is higher or lower than the predominant, I put in a comment explaining why. i.e. The subject could be well above the predominant value, due to being newer and larger than average, however, it may not be overbuilt or atypical.

If the subject is considerably higher than the predominant value on page one I usually opine that (in addition to tangible factors) . . .

" . . .the methodology used to determine the predominant value that is based upon 12-month market activity during a period of continually-increasing prices tends to skew the value downward rather than to reflect the current market."

 

[ZZGAMAZZ]

Hmmm interesting point! Once again, still trying to figure this all out. So, for example, if the neighborhood is a true mix of SFR, 2-4 unit, and condos you would still use them all rather than focus on, lets say, SFR?

I think that although part of page 1 pertains to the overall neighborhood, and the other part pertains specifically to competing properties, both sections pertain only to SFR's because it is entitled "One Unit Housing Trends." Question is . . . if learned, experienced appraisals don't all know, how can the intended user know (or care)? Although the task to identify market factors tends to become interesting IMO, how many minutes during a typical year do we devote to analytics that mean absolutely nothing to our clients?

 

[Dublin ohio]

how can the intended user know (or care)?

Since this situation is only present in gse, FHA, VA and usda work. It would be logical to assume that the intended users (typically underwriters) would need to understand the form. After all. They are required to conform to the selling guide(s)

 

[ZZGAMAZZ]

Since this situation is only present in gse, FHA, VA and usda work. It would be logical to assume that the intended users (typically underwriters) would need to understand the form. After all. They are required to conform to the selling guide(s)

I wonder if credit unions have underwriters who specialize in FHA loans?