"Predominant 1-Unit Housing Value"

[ZZGAMAZZ]

In the end it helps explain why FNMA no longer requires the 1004mc. Apparently not everyone was using it in the same way. I raise my hand I am one of them. I do only use sale that are reasonably similar to the subject.

I think GH's comment that this should have been a separate analysis not hooked so to speak to page one is spot on. Example would be small town usa. Population whatever. Dallas NC 2019 population 4,797 is a good example.How do you define the subjects property hood. Can't do it by Subdivision name, even though the Legal will describe some long forgotten subdivision title or the builder name. All through that small town is mixed use and all over that town you will go to get something comparable to your Subject. You could describe the neighborhood boundaries as everything inside the city limits of the Town of Dallas. 1950's style two and three bedroom bungalow are very common. So are old 1920's style mill houses. Now because of demand new construction In-fill is taking place.

So then tell me how do i describe that market? What do I put in the Neighborhood Range of pricing? I know what sale I would use in the 1004mc? Thats the easy part. BUT Its not that easy because the sale are so varied in this town that it won't make any sense at all.

The 1004MC is useless in that town. Unless you broaden the definition of what a comparable actually is! I always use supplemental Statistics in that town.

What am I saying wrong above?

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In that type of scenario (based on the automatic 1004MC calculator built into the data service), I simply allow the numbers to reflect the rithmatic (making sure the service provider has spained it thoroughly so I know what I'm saying), indicate "stable" down the line, and then describe in one of the narratives that the results are reported because it's required, although the formal results are virtually meaningless, and why. (Until I started using Spark, I found myself devoting more time to the market analysis than to the entire remainder of a report, til I realized that nobody probably reads it).

 

[Carnivore]

Occasionally I will snag one of those 300-400 SFR subdivision assignments,(I don't get any because I am too expensive and my turn is to long). Then when I look at the subject economic attributes I realize why nobody wanted to do it. No problem, Often it ends up easier than it appeared. Yes, that 1004mc gives some great market data. Yes its easy to define the neighborhood, Yes the range high, low and median look great , yes there are sale in the last 6 months, across the street and next door. LOL no alarm bells.

 

[Fernando]

I use the 1004MC to get a large enough sample to analyze a trend.
If you really use just similar homes like subject there may not be enough to do a statistically conclusion.
3 or 4 homes sold in a quarter may not reflect the market. Best would be at least 10 statistically but that would be too much work and too general. In the real world, you don't get that many.
Thus the 1004MC is, well for me, get just enough data to analyze. Many don't understand this thinking this form should be reflection on neighborhood range.
For the neighborhood in general, I would do a new statistical analysis.

 

[Dublin ohio]

I use the 1004MC to get a large enough sample to analyze a trend.
If you really use just similar homes like subject there may not be enough to do a statistically conclusion.
3 or 4 homes sold in a quarter may not reflect the market. Best would be at least 10 statistically but that would be too much work and too general. In the real world, you don't get that many.
Thus the 1004MC is, well for me, get just enough data to analyze. Many don't understand this thinking this form should be reflection on neighborhood range.
For the neighborhood in general, I would do a new statistical analysis.

Huh?

 

[alebrewer]

So the way I look at it is that there are three buckets of sales in the analysis. The biggest bucket of sales is 'all' the sales in the neighborhood (however you define neighborhood) sans high and low anomalies. These sales are considered for the 'One Unit Age/Price High/Low/Median' section. A subset of that largest pool are those sales considered comparable to the subject (2nd bucket). Those sales are used for the 'One Unit Housing Trends', the top of P2 of the 1004, and the 1004MC data. Then, the sales finally chosen for analysis in the SC (third bucket) are a subset of the 2nd bucket of sales...

 

[George Hatch]

For my neighborhood analyses, I do a low-median-high for both GLA and price, going back 5 years. I also refer to the highest sale ever sold in that area and talk about pricing trends from the last RE cycle to the present.

Being a little more descriptive of the neighborhood provides the context for how the subject fits in, and for what the subject's market segment is doing, which I address in its own section of the report.

Of course, a lot of lender-type clients aren't going to read either of those analyses unless they're unhappy with my value conclusions.

 

[Mejappz]

For my neighborhood analyses, I do a low-median-high for both GLA and price, going back 5 years. I also refer to the highest sale ever sold in that area and talk about pricing trends from the last RE cycle to the present.

Being a little more descriptive of the neighborhood provides the context for how the subject fits in, and for what the subject's market segment is doing, which I address in its own section of the report.

Of course, a lot of lender-type clients aren't going to read either of those analyses unless they're unhappy with my value conclusions.

I do something similar, but instead of five years, I go back two years unless the subject is an oddball.

 

[Carnivore]

I want to clear something up. Its not that I am doing this all wrong. I am doing it correctly. I have so many S/d's in the Charlotte Region where defining the S/D is difficult because of when they were first developed the Boundaries of those S/D are blurred because so many different builders were involved. You literally can cross a street in the S/D and be in another S/D. This is per the Legal Description of the SFR. Dilworth is a Historical District in Charlotte. Oddly Dilworth seems to be growing! the reason Dilworth seems to be growing is because the Market Participants are saying that. If I go in a restaurant/tavern in Dilworth and strike a conversation with someone they may say the live just down the street. Implying they live in Dilworth even though by the official Plat I have in the office says differently. Myers Park is another one not all that far from Dilworth. Myers Park has magically grown. People(market participants) have ego's.

If we take my S/D 'Hearthstone' and described the Hood on page one with boundaries, range of value etc and then fill out the 1004mc you end up painting a picture that really does not represent the actual Market. If you take the low and high in my Hood even after throwing out the lowest and highest you will probably set off alarm bells at AMC Phone Monkey. I am kinda guessing (I'm the Cobbler who has no shoes) meaning I am the Appraiser who does't know his House GLA. The range of value is 250k - 900k, Not sure what the median is but my house will fall below that number.

I guess my real point is you will often have to have an addendum to describe many "Hoods". The form constraints force that.

 

[ZZGAMAZZ]

I use the 1004MC to get a large enough sample to analyze a trend.

If you really use just similar homes like subject there may not be enough to do a statistically conclusion.
3 or 4 homes sold in a quarter may not reflect the market. Best would be at least 10 statistically but that would be too much work and too general. In the real world, you don't get that many.
Thus the 1004MC is, well for me, get just enough data to analyze. Many don't understand this thinking this form should be reflection on neighborhood range.
For the neighborhood in general, I would do a new statistical analysis.

I seem to recall that the number "30" is critical if one is to employ the term "statistical." Might be a pedantic factor but I sure would advise opposing counsel to call you on that if we met in court (or at the pub, in fact).

 

[ZZGAMAZZ]

So . . . did we all agree upon the following market factors?

1. Page 1 Neighborhood Characteristics. ALL PROPERTIES
2. Page 1 One-Unit Housing Trends. ALL PROPERTIES
3. Page 1 One-Unit Housing. COMPETING PROPERTIES
4. Page 2 Top-of-Page Comparable data. COMPETING PROPERTIES
5. 1004MC. COMPETING PROPERTIES