Subject’s Sub-Market
Seller-(developer, builder, etc.)paid financial assistance prevalent?
Explain in detail the seller concessions trends for the past 12 months (e.g., seller contributions
increased from 3% to 5%, increasing use of buydowns, closing costs, condo fees, options,
etc.).
Seller concessions are significant in the market place and typically reflect a higher price structure with concession inclusion than sales without concessions. According to FNMA’s market value definition and guidelines for seller concessions the appraiser determined that seller concessions in the subject’s market area typically do not reflect market value and were adjusted for in the sales comparison approach in this appraisal report.
Are foreclosure sales (REO sales) a factor in the market? If yes, explain
(including the trends in listings and sales of foreclosed properties).
Foreclosure ratio is declining per complied market activity. The decline may be due to an
increase in short sales.
.
SCOPE OF WORK (MARKET CONDITIONS ANALYSIS)
Data Source (Subject’s-sub Market): Mris.com (local MLS system)
Analysis of Subject’s Sub-market
The appraiser compiled market activity for prior 2 yrs from the subject’s neighborhood to
illustrate market trends and develop the comparable pool for selection of data points used to
reflect the subject’s market value.
The over all trends are a stable inventory ratio, declining foreclosure ratio, and a slightly
increasing median sold price. The most recent sales were renovated units which reflect a
higher price than typical and illustrate an artificial upward trend in the price trends graph in
attached MC worksheet.
Definitions:
Neighborhood- A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises. (The Dictionary of Real Estate Appraisal 4th Edition, Appraisal Institute)
Real Estate Market- The interaction of individuals who exchange real property rights for other assets such as money; a group of individuals or firms that are in contact with one another for the purpose of
conducting real estate transactions. (The Dictionary of Real Estate Appraisal 4th Edition, Appraisal
Institute) Market Segmentation- The process by which submarkets within a larger market are identified and analyzed. (The Dictionary of Real Estate Appraisal 4th Edition, Appraisal Institute)
Subject’s Sub-market- The total pool of comparable properties from which a potential set of purchaser might (in the case of closed sale) have considered purchasing , or (in the case of an on-the-market property) might consider purchasing. Implicit in this definition is that this particular set of purchasers has both the desire and ability to purchase the properties. If a specific set of purchasers would consider the “Subject Property”, but not Property B, then Property B, would not be in the Subject’s Sub-market . The Subject’s Sub-market may be all or only a segment of its neighborhood.
NOTE: The 1004MC-71 form and the URAR form tend to use “Neighborhood” and “Subject’s Submarket” interchangeably though they are defined differently. This form is required by the client and cannot be modified by the appraiser. Intended users should obtain additional information from the creators of these forms (FANNIE MAE and FREDDIE MAC) if this issue interferes with a clear understanding of the analysis, conclusions, or opinions presented. Use of these terms by the appraiser anywhere except the 1004MC or URAR forms conform to the above definitions.
maryland home appraiser, maryland appraiser, maryland certified appraiser, montgomery county appraiser,virginia appraiser, viringia certified appraiser, virginia home appraiser, maryland property appraiser, virginia property appraiser
VACHI.INFO BLOGS :: Carlton Mitchell's Blog
COMMENTS & EXPLANATIONS
Subject’s Sub-Market
Seller-(developer, builder, etc.)paid financial assistance prevalent?
Explain in detail the seller concessions trends for the past 12 months (e.g., seller contributions
increased from 3% to 5%, increasing use of buydowns, closing costs, condo fees, options,
etc.).
Seller concessions are significant in the market place and typically reflect a higher price structure with concession inclusion than sales without concessions. According to FNMA’s market value definition and guidelines for seller concessions the appraiser determined that seller concessions in the subject’s market area typically do not reflect market value and were adjusted for in the sales comparison approach in this appraisal report.
Are foreclosure sales (REO sales) a factor in the market? If yes, explain
(including the trends in listings and sales of foreclosed properties).
Foreclosure ratio is declining per complied market activity. The decline may be due to an
increase in short sales.
.
SCOPE OF WORK (MARKET CONDITIONS ANALYSIS)
Data Source (Subject’s-sub Market): Mris.com (local MLS system)
Analysis of Subject’s Sub-market
The appraiser compiled market activity for prior 2 yrs from the subject’s neighborhood to
illustrate market trends and develop the comparable pool for selection of data points used to
reflect the subject’s market value.
The over all trends are a stable inventory ratio, declining foreclosure ratio, and a slightly
increasing median sold price. The most recent sales were renovated units which reflect a
higher price than typical and illustrate an artificial upward trend in the price trends graph in
attached MC worksheet.
Definitions:
Neighborhood- A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises. (The Dictionary of Real Estate Appraisal 4th Edition, Appraisal Institute)
Real Estate Market- The interaction of individuals who exchange real property rights for other assets such as money; a group of individuals or firms that are in contact with one another for the purpose of
conducting real estate transactions. (The Dictionary of Real Estate Appraisal 4th Edition, Appraisal
Institute) Market Segmentation- The process by which submarkets within a larger market are identified and analyzed. (The Dictionary of Real Estate Appraisal 4th Edition, Appraisal Institute)
Subject’s Sub-market- The total pool of comparable properties from which a potential set of purchaser might (in the case of closed sale) have considered purchasing , or (in the case of an on-the-market property) might consider purchasing. Implicit in this definition is that this particular set of purchasers has both the desire and ability to purchase the properties. If a specific set of purchasers would consider the “Subject Property”, but not Property B, then Property B, would not be in the Subject’s Sub-market . The Subject’s Sub-market may be all or only a segment of its neighborhood.
NOTE: The 1004MC-71 form and the URAR form tend to use “Neighborhood” and “Subject’s Submarket” interchangeably though they are defined differently. This form is required by the client and cannot be modified by the appraiser. Intended users should obtain additional information from the creators of these forms (FANNIE MAE and FREDDIE MAC) if this issue interferes with a clear understanding of the analysis, conclusions, or opinions presented. Use of these terms by the appraiser anywhere except the 1004MC or URAR forms conform to the above definitions.
maryland home appraiser, maryland appraiser, maryland certified appraiser, montgomery county appraiser,virginia appraiser, viringia certified appraiser, virginia home appraiser, maryland property appraiser, virginia property appraiser