Selling Guide Announcement (SEL-2024-07)

[DWiley]

I used the Market Conditions Report provided by Total from ala mode. Same report I have used for this lender on all of the appraisal reports I have submitted. I have attached a copy of it in case you are not familiar with it. It does have a feature where you can add graphical depictions of the data, but I have never included that because it seems unnecessary if you include the table showing the trends.

View attachment 101169

Freddie Mac Single-Family Seller/Servicer Guide

The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information.

guide.freddiemac.com

The Selling Guide says - The market trend identified in the appraisal report must reflect the overall movement of the market based on a minimum of 12 months of data.

Hence, my guess would be that they see the overall decline in both SP and LP in the past year and are wondering why they are marked "Stable"

 

[Terrel L. Shields]

 

[Surf Cat]

Freddie Mac Single-Family Seller/Servicer Guide

The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information.

guide.freddiemac.com

The Selling Guide says - The market trend identified in the appraisal report must reflect the overall movement of the market based on a minimum of 12 months of data.

Hence, my guess would be that they see the overall decline in both SP and LP in the past year and are wondering why they are marked "Stable"

That's what I saw when I took a gander at the attached MC....declining sales along with declining list prices.

Also....does the OP "really" have 203 competitive sales to that of the subject in the last 12 months? If so, that's amazing!

 

[Dublin ohio]

That's what I saw when I took a gander at the attached MC....declining sales along with declining list prices.

Also....does the OP "really" have 203 competitive sales to that of the subject in the last 12 months? If so, that's amazing!

Almost seems like they used the "Fernando" neighborhood expansion methodology. I'm not at all familiar with the Texas market, but the sp/lp ratio also caught my eye. I rarely see anything less than 96% in my area

 

[GCAR]

I added the regression analysis to the report and will discuss ad nauseum. Thank you all for your feedback.

 

[DWiley]

I added the regression analysis to the report and will discuss ad nauseum. Thank you all for your feedback.

How old were the comps? For example, the 1004MC posted suggests negative adjustment for a 8 month old comp (of course that does not necessarily mean adjusting all the comps, depending on their sale dates).

And, if you indicated a stable market on page 1, that is contrary to 12 month analysis (as required by the Selling Guide) shown in the 1004MC.

 

[Terrel L. Shields]

I still think the mechanical view of "sales" and "prices" devoid of judgment is a markedly flawed methodology. One can ask the Realtors and look at the data and KNOW within reason that the market is one or the other. But declaring you need 200 sales, or you rely upon pairing the 3-6 comps you have to support your judgement is no better than simply looking at the activity in the area and making a judgment. 200 sales is a broad range of property ages and types typically, and 3 sales are inadequate for any quantitative analysis. You are simply disguising data in a meaningless way.

 

[J Grant]

I think the sweet spot on the AC addendum is 20-30 sales., 40 tops. Sometimes there re not enough sales to populate beyond a handful, - (then supplement it with a second wider search for two MC forms perhaps. If there are too many, most are not competitive, and it is more relevant to whittle the amount down.

 

[Surf Cat]

I added the regression analysis to the report and will discuss ad nauseum. Thank you all for your feedback.

So.....are you switching to declining? From the 7-12 month section, that's a -3.12897% difference. Now, since you have 76 sales in the 0-3 section, I'm assuming all your comps are within 3 months. So, you possibly won't have to make any time adjustments. But you still have to indicate declining.

 

[NC Appraising]

Also....does the OP "really" have 203 competitive sales to that of the subject in the last 12 months? If so, that's amazing!

I'm glad you went there lol. The CU came back asking why they didn't consider the following 156 comps? That's a big addendum


Maybe he is appraising in the villages? Make that STD adjustment.