Selling Guide Announcement (SEL-2024-07)

[Fernando]

My understanding is that if market is increasing or decreasing, appraisers should show findings to justify market condition changes in their adjustments if needed.
If stable, appraisers don't necessary have to show proof. Am I wrong?

 

[Surf Cat]

If stable, appraisers don't necessary have to show proof. Am I wrong?

Good Lord....

 

[Fernando]

Good Lord....

I'm not talking about 1004MC. That form is a joke.
I mean real analysis.

 

[Dublin ohio]

Doing price trend analysis require understanding of statistics especially with relevant information.
Some think throwing in data will substantiate their claims.
I can look at what data collect and if not acceptable, throw it back to the appraiser to show better proof.

That's rich coming from the person who expands the neighborhood to make the MC look better

 

[Dublin ohio]

If stable, appraisers don't necessary have to show proof. Am I wrong?

yes

 

[Surf Cat]

This isn't even what the selling guide or the announcement says. Nothing about statistical data being required. I read this and the rest of the boilerplate request I'm immediately skeptical that it's the reviewer who was lazy, not the appraiser.

I believe.... "it's implied".

Market Condition Adjustments

A property value trend has three categories: increasing, stable, and declining. The category chosen by the appraiser may be different than the market condition adjustment(s) applied to a comparable sale(s) in the Sales Comparison Approach. An adjustment made to a comparable sale(s) is based on market changes between the contract date of the comparable sale(s) and the effective date of the appraisal. Depending on when the contract date of the comparable sale(s) occurred, it is possible to have positive, negative, or no adjustments applied to different comparable sales in the same appraisal report.

You're not going to be able to do the above without some sort of "statistical analysis" tool that shows the market trends on a month to month basis. No more straight line from 12 months back to the effective date.

As Chad has stated above.......we're just not getting paid enough for the level of precision required.....AMC appraisers have been taking "short cuts" for years.

 

[DWiley]

My understanding is that if market is increasing or decreasing, appraisers should show findings to justify market condition changes in their adjustments if needed.
If stable, appraisers don't necessary have to show proof. Am I wrong?

SR1 requires that appraiser to conduct market analysis in all cases. The GSEs now require that appraisal reports for their loans contain that analysis, regardless of the conclusion and/or adjustments,.

 

[Fernando]

The 1004MC is too simplistic made for everyone to plug in the data.
The form makes it seem legit for a market trend. I go along with how the game is played.

 

[DWiley]

The 1004MC is too simplistic made for everyone to plug in the data.
The form makes it seem legit for a market trend. I go along with how the game is played.

I agree that it is simplistic, and I always did far more in my own assignments. It was done to force those who were doing nothing to at least do something.

 

[Joe Flacco]

I think a concept some are still struggling with is this - the difference between the overall trend and the individual adjustments.

What have prices done in the past year? If prices have declined since this time last year, then the trend is declining. But, that does not mean that there will be negative market conditions on all the comps - maybe not on any of them.

Example: Suppose there was enough data for monthly analysis, and suppose that analysis, showed the following price trend:

July $400K
Aug $396K
Sep $392K
Oct $388K
Nov $384K
Dec $380 K
Jan $375K
Feb $375K
March $376K
April $374K
May $376K
June $376K

For all comps sold in the past 6 months it would be reasonable to say that the market in that time period is stable, and no adjustments are warranted.

At the same time, the trend on page 1 should be declining, because based on a minimum 12 month analysis the prices have declined.

LOL you wish it could be clean like that.