Market Conditions???????????????

Real Estate Appraiser

I have a question to my fellow appraisers. This question is mainly directed to appraisers working in underperforming markets, like Florida, Arizona, Nevada, and California. What are you doing when the subject's subdivision is increasing in value, but everything in the else in the area is declining? On page one the section on "Market Conditions", now I was trained that Market Conditions, included an area larger than the subdivision, like a section of the county. When I filled in The Great 1004MC form, it showed the trend is increasing values for the subdivision. We all know why I'm posing this question, it was an Underwriting Condition!!!!!!


I stated in the report why I did not make any adjustments to the sales that were over 90 days old (I guess they overlooked that in the addendum, go figure), and cited the 1004MC, and the local MLS data.


So do we only use the 1004MC data for Market Condition, from now on, when a subdivision is increasing?


I'll quote Rick Moranis from Head Office, "I Love My Job!!!!" as I'm hooked to a blood pressure tester.

Comments (5)

Jesse Skolkin
Independent New York State Certified Real Estate Appraiser - Fresh Meadows, NY

My understanding of the form 1004MC is that it applies only to properties that are comparable to the subject.  My understanding of the Market Conditions section of the Form 1004 is that it applies to the local neighborhood or the marketing boundaries as defined in the Neighborhood boundaries. 

Dec 04, 2009 11:52 AM
Ed Walter
Ed Walter, Realtor-Appraiser - Safety Harbor, FL
St. Cert. Res. REA #RD1571

A market can be as small as one subdivision especially if that subdivision is unique to its surrounding homes. I'm finding many of the modest and lower end homes have bottomed out and are beginning to increase, probably due to the first time home buyer tax credit. Good luck since there seems to be no standard in underwriters!



Dec 09, 2009 01:57 AM
Michael Zollo
Coral Springs, FL
Certified Residential Appraiser, South Florida, FH

Thanks Jesse.

Thanks Ed, when it comes to underwriting nothing shocks me anymore!!!! I think and so does a news story I read on my ATT home page, that your metro area(Tampa, St Pete) might be recovering faster than, South Florida. Well maybe not Northport!!!!!!

Dec 09, 2009 02:21 AM
William Kincheloe
Kincheloe Inc. Appraisal Services - Las Vegas, NV

I recently took a McKissock appraising in a changing market class and the instructor stated that fannie mae recognizes that the neighborhood section is filled out per the 1004mc form and that if your not consistant with the 1004mc form the underwriters will be confused so I just blurbed it up.  Telling them exactly that.


Jan 05, 2010 04:47 AM
Richard Glesser
North Country Appraisal Services - Gaylord, MI

In my Market Conditions Comment on Page 1 of the URAR, I elaborate on those conditions forcing the comment onto an addendum page (Yes, mostly boilerplate).  I conclude by developing the argument that the 1004MC has no relevance in my service area of Northern Michigan and conclusions indicated by the form must be dismissed based upon lack of adequate sales and listing volume and an annual market of 12 months with a annual winter dormant marketing period of 7 months leaving a 5 month active market each year.  This blows the quarterly sales trends of the 1004MC out of the water.  I'm sure it's different in market areas which remain active throughout the year.  But your defined market area, even if only a subdivision, is where the information must be drawn.

Jan 22, 2010 11:29 AM