Ain’t nothin right on, most reports require a lots of words, many writers won’t.

Not really – graphs are only good relating to sub-market trends – anything else is bells and whistles. Incidentally, those graphs are RARELY properly explained or defined.

We’ve changed a lot in our thinking, much brought on from more intense information. Used to think the longer on the market the higher the price, better information from lp/sp ratios clearly illustrate that the properties only sell within 3 or 5% of their FINAL listing. I quit FHA et al when the client dictated girding 3 listings. Most Realtors won’t report contingent sales because the deal might queer.

Realist is a wonderful tool. You can search by PRICE (priced over 5 million, or a geographical neighborhood) McMichale, a pioneer thought that price was one of the best indicators??, many listings agent do also. Sometimes we have to illustrate our position in an unpopular manner.

Downloading realist data into a familiar spread sheet allows us to illustrate spreads of raw data into usable & sensible information.

Sorting comparable info by Sq Foots and then re, re re sorting into differing scenarios illustrate a situation before we have to graph. Downloading the in altered Spread sheet into the report may add a few pages but illustrates the repeat-ability which is the all important report quality

The lead article is about trends.

But I never hear anyone talking about how the fed purposefully depreciates currency 2-3% yearly, and plans on doing that year over year.

I know it may be difficult to understand but the federal reserve seeks prosperity through debt, by devaluing your currency.

Anyways, nobody talk about cash equivalency and a manipulated lending rate, inflation or fiat currency, perhaps you’ll make better sense of the lending markets than I’m able to. Cheers.

Sounds like you meant to say Bagged down. The two MLS’s used had easy access. They allowed special items to be put into excel for the downloads. The sorts and the graphs were as easy as excel the thoughts took a minute more.

No longer an appraiser. Just interested in my profession for the last 50+ years

Sounds like more work. I just filter within MLS then pop up the MC, and then recalculate a proper median list and ratio. Easy. It all depends on what your local MLS offers. It’s not yet mandatory to have to scrape data into excel and other programs, hopefully never will be. Intuitive market research. Something only experience brings. Don’t get too bogged down in the tech or you’ll miss the real property picture. Cheers.

I download the MLS data into excel. his allows me to sort and graph the data. I might take 200 items from the chosen neighborhood of active, pending, contingent and closed items.

These items can be re configured sorted and conclusions taken from these individual processes. The weakness of large data is ever present, and ever self correcting.

In the past I used Don Manchowitz? algorithm which was available free on the internet

Still using MC and some of the clients out there still request this, now in a special SOW statement they just added on. It’s simple, convenient, and helps structure meaningful research approaches. It’s not always on point, but if you take the time to narrow and play with data, most of the time it’s a great tool to use. MC could have used more detail, a UC populace slot, room for a larger data set or supplementary additional MC, and honestly would have been better implemented if there was no data correlation to the figures in the MC vs the figures in the 1004 form. Sometimes I have to still fill in the MC w/ above grid figures, even though I’ve posted a supplementary MC which better expressed trending. This is because automatic review tools seek to match the consistency of entered data.

The above grid 1004 figures are for best expression of value range for this particular segment of properties. The MC is for best expression of market price and value trending. The two considerations are not just automatically the same, no matter how the non licensed tech crews program automatic report review protocols. Tech advancement people in the appraisal industry know just enough to be dangerous and disruptive, only rarely are they actually helpful. Don, bumping the thread. More people should bump older commentary threads, this website is rich with informative data.

I have a sneaking suspicion someone did not plan out the unintended consequences which come with tinkering of appraisal process and demand for increases in production volume… Waiting in line for another full fee client. Long lines, bummer. 3 out of 4 appraisers would rather freeze to death in line rather than work with amc’s. Perspective my dear Watson, perspective.

Yeah, take care with that though, the various MLS systems have varied ways of calculating MC list vs sale figures. Some populate the MC data with anything listed, even if withdrawn and not successfully sold, possibly skewing result. You’ll likely recognize this due to mismatching numbers where the final % number is not indicative of a simple division analysis of the two list price and sales price numbers populating that time block. I find that looking at list vs sale for about a half dozen to dozen individual units provides more illuminating perspective.

The median list price is constantly changing. One of the most active changes in M.L.S. is the number of times listing price will have changed before sold. After the sale, the List price ratio becomes stable. At any one time during the listing, this may be is a hopeful indicator, it may be cursor of the future, however our date of value is in the past under the FHA or the FNMA definition.

Because FHA wants ‘market data’ and FNMA wants carefully screened and selected data. Data which on the basis of conformity alone would tend to suggest the quality of their portfolio is better or less risky than one in which broad price ranges; ages and quality levels were found. One that may suggest a subject could be nearer the bottom of the neighborhood ‘barrel’ than the top or middle.

Thank you Dave, and I would love some help understanding the process since I must not be doing it right (although at least it is consistent). Could you please provide some examples? All of the people reading would benefit as well. Good to learn new things.

Thanks Mike, I certainly appreciate your thoughts on this. In the article, I tried to address the requirements from the Selling Guide, as well as macro data. There are two charts directly culled from a sample, which includes both the macro data and a submarket that would be similar to what Fannie Mae requests. There are also some charts here with larger macro data from sources such as Trulia and Movoto, which is useful to include. I find also that RPR has good data. The point is, that we want to have support for whatever we decide the market is doing, be it the submarket, or the macro market, or both. For my appraisal reports, I like to analyze both, because you have to know what is going on in the wider market to have a good grasp of the submarket.

Thank you for your kind comments and thoughtful discussion. We truly do need to reach out and try to help each other in order to stay relevant, and out of trouble 😉

PRIOR to FNMA adopting the misguided 1004MC appraisers did NOT measure neighborhood trends by the subject property. It simply did not happen, and the rationale or reasons for doing that by FNMA was just more of flawed practices that reduced overall appraisal quality. Comparable sales didn’t even enter the picture until the sales comparison approach was being performed. A neighborhood analysis was just that. It was independent of ‘comparable’ sales until after the sales reconciliation and maybe even final reconciliation where we then explained ‘how’ the subject fit and was perceived within its neighborhood.

The whole point of a neighborhood analysis is not to isolate comparable property (at least not initially). It is to identify HOW the subject property relates to its neighborhood. Does the subject conform in terms of price, size, quality and condition? Is it an over improvement? Is it an under improvement? HOW does the subject fit in the neighborhood?

Many markets have extremes in value. Huge extremes. When we ignore this and only consider similar property in the neighborhood analysis we are actually producing misleading results. Investors may be lead to believe a compatible degree of homogeneity exists, that simply does not. They may rate the investment lower risk as a result. A brilliant, albeit dishonest move on FNMAs part if intentional.

The minute FNMA forced us to change our core neighborhood analyses to hopefully better fit the fatally flawed 1004MC & their UCDP data-gathering plans it also negated the benefit and purpose of neighborhood analyses.

We substituted a limited and flawed analysis of only those properties in the neighborhood that are ‘comparable’ to a subject for a meaningful neighborhood analysis. (I’ll hold off confusing this with a competitive market area analysis which would or could effectively be the same thing).

Instead of looking at the entire picture, we started looking through a straw at only selected segments of it. We effectively eliminated micro economic analysis from the appraisal.

We allowed data scrubbers and software pushers to virtually eliminate the one condition of the market that they cannot reconcile with automated data. That was the REAL MARKET itself!

The ‘market’ that had a price range from $250k to 1.5k; had industrial presence and commercial uses; poorly maintained and above average maintained housing. One that had entry level housing as well as step up housing. A real market area-not a fantasy one.

A little ‘secret’ about markets. Agents historically never only showed certain category houses to clients.” We” (I used to be one) always tried to ‘bracket’ those. One we knew was inferior and no chance of being bought; one that was superior and too costly to buy, and lastly the one we hoped to sell based on our interviews with the buyers. Admittedly this was before the current batch of agents that seems afraid to meet with their clients in person, & in advance as a condition of showing them property. Before the days of “go drive by” and let me know what you think agents; & internet ‘lists’.

However, I can not but help to remember the clear capital hybrid product thread from only several months ago, and the dailies which came after.

If I recall correctly, well, it’s difficult to reconcile the fact these emerging product lineups are absolutely not in compliance with these sensible guidance points.