Stable Market

[Mark K]

I admit when I need to bump up the appraised value, I use time adjustments on older comps. It's easy.

And therein lies the problem, or at least part of it.

And some wonder why the lenders are moving to Waivers and AVMs.

 

[Dublin ohio]

Lol. Yeah the..due to the lack of comps from within the defined neighborhood boundaries....didn't work with these AMC reviewers.

I had to make a custom canned comment just for that.

How are we going to combat this with the new forms? No more canned statements for the AMC reviewers?

I truly understand why some appraisers do what they do. It makes their life so much easier and less rejections. Hard to fault them.

My direct lenders understands. One actually says in the LOE not to expand the boundaries just to include sales....

They love it when there are 100 sales ranging from $250k-$950. But the appraiser used sales from outside of the defined boundaries.

AMC "reviewers" are very seldom appraisers. My two main AMC clients have actual appraisers doing the reviews. One is a lender owned AMC so in realty I am speaking to the horses mouth. The other is a small regional AMC that is actually owned by an appraiser. So nice to be able to pick up the phone and talk to somebody that understands appraisals and have had to deal with the same situations at one time or another

 

[ZZGAMAZZ]

I seldom have enough truly comparable sales to make the 1004MC credible or relevant.

A thought...in a market with sparse activity of ideal comparables, potential buyers typically apply more liberal search criteria, when they realize that nothing is available as they had hoped. If the market defines virtually everything being reported, shouldn't the range of criteria thar defines competing properties also be enlarged?

 

[Dublin ohio]

A thought...in a market with sparse activity of ideal comparables, potential buyers typically apply more liberal search criteria, when they realize that nothing is available as they had hoped. If the market defines virtually everything being reported, shouldn't the range of criteria thar defines competing properties also be enlarged?

You can expand your search to the overall "market area" but the neighborhood is still the neighborhood

 

[Charles West]

Non-responsive. So when the CPI was claimed to be about 7% during 2021 and I was measuring price increases of 2% per month, I should have been adjusting at 7% per month? I would have mailed my license in after the first time!

No, no, no. 7% divided by 12 is the monthly figure to use. And you have to remember when I was practicing I didn't have a shortage of comparable properties to choose from like in this current market.

 

[NC Appraising]

1004mc
Instructions: as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent
it is available and reliable and must provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an
explanation. Sales and listings must be properties that compete with the subject property, determined by applying the criteria that would be used by a prospective buyer of the
subject property.

Fannie mae:
Q2: What if requested data is not available to the appraiser? For example, what if comparable
active listings from a previous time period are not available?
If the appraiser is unable to complete a portion of the addendum because data is unavailable or
unreliable, the appraiser must provide an explanation of his or her efforts to obtain such data and
why it is not available. Simply stating “not applicable” or “N/A” is not an acceptable response.

Q4: What should the appraiser do if there is not enough data to present a meaningful analysis?
In those situations, the appraiser must complete the form with the information they have for the
defined neighborhood/area—as the lack of data may indeed speak to what is occurring in that
area. Additional analysis can be addressed in the summary/conclusion section of the form on data
in nearby areas for competitive properties. In any event, the appraiser must provide support for
their conclusions as to housing trends as noted in the Neighborhood section of the appraisal

 

[NC Appraising]

B4-1.3-08, Comparable Sales (06/04/2025)

This topic contains information on selection of comparable sales, including

selling-guide.fanniemae.com

When choosing comparable sales, the appraiser should examine the market area of the subject property, assess its characteristics, and identify similar comparable sales. Market area is defined as the geographic region, for a subject property, from which most demand comes and in which most of the competition is located. This does not mean comparable sales must be identical to the subject property, but instead should be competitive and appeal to the same market participants that would also consider purchasing the subject property. If the available comparable sales are not similar, the appraiser needs to decide whether an expansion of the market area search is appropriate. If this occurs, the appraiser must provide commentary to explain the rationale for selecting comparable sales outside the subject's market area and make location adjustments if warranted.

Comparable sales from within the same market area (including subdivision or project) as the subject property should be used when possible and must be used in certain instances (see below). Sale activity from within the neighborhood is the best indicator of value as sales prices of comparable properties from the same location should reflect the same positive and negative location characteristics.

Fannie Mae does allow for the use of comparable sales located in competing market areas, as these may simply be the best comparables available and the most appropriate for the appraiser’s analysis. If this situation arises, the appraiser must not expand the neighborhood boundaries just to encompass the comparables selected. The appraiser must indicate the comparables are from a competing neighborhood and address any differences that exist. The appraiser must also provide an explanation as to why they used the specific comparable sales in the appraisal report and include a discussion of how a competing neighborhood is comparable to the subject's neighborhood.

If a property is located in an area in which there is a shortage of truly comparable sales, either because of the nature of the property improvements or the relatively low number of sales transactions in the neighborhood, the appraiser might need to use properties that are not truly comparable to the subject property. In some situations, properties that are not truly comparable may simply be the best available and the most appropriate for the appraiser’s analysis. The use of such sales is acceptable if the appraiser adequately documents the analysis and explains why they were used. (For additional information, see B4-1.3-03, Neighborhood Section of the Appraisal Report

 

[ZZGAMAZZ]

You can expand your search to the overall "market area" but the neighborhood is still the neighborhood

I honestly don't know: Does the term "competing" properties include proximity to the subject, or just properties that a typical buyer would consider as logical alternatives, going further n further away until a reasonable quantity--large enough sample size so as to legitimately "compete," taking advantage of the ambigity of appraisal regulations--is available from which he or she could choose???? Often seems that the 1004MC template/format should include the search criteria upon which results are based. For example, I was chided recently by an AF member because I admitted to excluding "condition" as a search criteria for competing properties, although it is indeed logical to do so.

 

[Fernando]

I guess this agent was just lazy. Before you try to weasel anything....the home has not changed.

1149 Rosecliff Dr, Waxhaw, NC 28173 | Zillow

1149 Rosecliff Dr, Waxhaw NC, is a Single Family home that contains 4019 sq ft and was built in 2025.It contains 5 bedrooms and 4 bathrooms.This home last sold for $1,490,000 in June 2025. The Zestimate for this Single Family is $1,495,000, which has increased by $4,600 in the last 30 days.The...

www.zillow.com

Closed 06 25 for $1,490,000
Sold 01 25 for $1,383,288.

Darn that stable market lol.

I would look at any remodeling/improvements done after purchase in 1/2025 and concluding.

 

[Fernando]

Going outside the neighborhood for comps when you have comps in the subjects neighborhood...now that doesn't raise a flag with anyone?

cert 7 in the URAR: i selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property.

Hey fannie and freddie.....you need to add the most recently closed sales to the cert 7.

Outside neighborhood if not sufficient similar comps in neighborhood. Outside comp would be my 4th comp. Common sense.