What Fannie Mae 1004 MC Comments Am I Using In My Real Estate Appraisals

http://bestfanniemae1004mcsolution.ning.com/ – What Fannie Mae 1004 MC Comments Am I Using In My Real Estate Appraisals

Question 1.) Explain in Detail the Seller Concessions Trends For the Past 12 Months.

In the subject’s market, it is typical and has been traditional for the seller to pay up to 2-3% in closing costs.  Over the past 12 months, the amount of seller paid concessions has increased slightly from 2.5%, 2.5% to 3.4% current 3 months.  Also, percentage of sales with contributions has been 50%, 63% and currently 66%, increasing.   The increased seller contributions appears to be driven by competition for buyers in the current “buyers market”.  Many buyers in the current market lack the necessary down payment to qualify for loans, therefore sellers needing to sell a home opt to assist a potential buyer qualify.

Question 2.) Are foreclosure sales (REO sales) a factor in the market?

The SMART MLS Analysis showed only 5 REOs sales of 240 total comparable sales since 1/1/07, or 2.08% of Total Sales, which doesn’t appear to be an indication that REOs are negatively impacting this market.  It’s also stated here that a recent article (The Landmines Within by Michael Tarabotto
http://activerain.com/blogsview/927638/The-Landmines-Within ) stated that as much as 70% of REOs never make it into the MLS.  MLS is reporting ZERO comparable REO listings.  However, since it’s possible that 70% of REOs and/or Sheriff Sales never make it into the MLS System, it’s almost impossible to
know exactly how many competing REOs there really are out there.

Question 3.) Cite Data Sources For Above Information.

The data provided in this analysis was generated using a proprietary data analysis tool, S.M.A.R.T. Appraiser.   This tool enables the appraiser to extract records from _________ MLS and analyze both the General/Macro market and Micro/Sub Market of homes from the defined neighborhood.

Question 4.) Summarize the above information…..

The data utilized in the tables above was extracted from _______ MLS.  This data is considered to be reliable by the appraiser’s peer group.  The amount of research to analyze this information is consistent with “normal course of business” of the local peer group.  The analysis of some portions is limited by
the lack of data or search features of the MLS system.  The accuracy of the data above is solely dependent upon the accuracy and timeliness of the data provided by the users of the MLS system.  When possible the appraiser included in the analysis any pending sales, expired and withdrawn listings in order to have a more thorough understanding and awareness of current and past market conditions.  All of these factors combined have an impact on the opinion of the market’s trends and the final opinion of value.   NOTE: THE _______ MLS DOES NOT ACCRUE LISTING HISTORY, THEREFORE, THE ANSWERS OF “N/A” ABOVE ARE ACCURATE ANSWERS BECAUSE MY MLS DOESN’T SUPPLY THIS DATA.

What Fannie Mae 1004 MC Comments Am I Using In My Real Estate Appraisals

About Bill Cobb, Appraiser

The Baton Rouge Residential Appraisal Blog is an information source provided by local Home Appraiser, Bill Cobb, and Accurate Valuations Group. Bill has 24 years experience as a Baton Rouge Residential Home Appraiser and updates his local network of sites weekly with reports, videos and audio reviews of local housing market conditions! 225-293-1500