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Line 3, Total # of Comparable Active Listings

On this line the appraiser should report the total number of active listings as of the last day in each time period.  For the time period Current – 3 Months, this will be the total number of active listings as of the effective date of the appraisal. If this line is not reported correctly, then the calculation of the Months of Housing Supply on the next line will be incorrect as well.

Common Issues

Reporting the Cumulative Listings throughout the Time Period

When the 1004MC was first introduced, appraisers were instructed to report the cumulative listings that were active throughout the entire time period.  However, Fannie Mae Announcement 2010-09 modified the instructions as follows:

 

 

The complete document may be found at this URL: https://www.fanniemae.com/content/announcement/sel1009.pdf

In the Current – 3 Months column the entry should reflect the number of comparable listings in the subject’s neighborhood as of the effective date of the appraisal.   The other two columns should report the number of comparable listings as of the last day in each period, if available.  This information is not available in many MLS systems, which is why these fields are gray and designated as optional by Fannie Mae.  Note that some clients require completion of these fields.  Various entities offer software to assist in compiling and reporting this information. Refer to the discussion of software tools later in this publication for more information on that topic.

Inconsistent Data When Compared to Page Two

The most common issue related to this line is the presentation of data that conflicts with the data reported at the top of page two of the URAR.  The third column on this line and the top of page two address the same fundamental data – the number of listings of comparable properties in the subject’s neighborhood as of the effective date. Hence, the number of listings reported in the Current – 3 Months column must equal what is reported on page two.

Reporting Based on Days on Market

Another common error is placing entries in each column based on how long ago a current listing was placed on the market.

Example of Incorrect Reporting:

Page Two

1004MC

 

In this example of incorrect reporting, the appraiser intends to communicate that on the effective date of the appraisal there were six active listings.  Two were listed within the last three months, three were listed 4-6 months ago, and one was listed 7-12 months ago. 

If done correctly, in the column labeled Current – 3 Months the entry would be “6,” not “2.”

The length of time that comparable properties are on the market is addressed by data on line six and line eight. The length of time that properties are on the market should have no effect on the entries on line three. 

For each time period, the appraiser should report the total number of active listings of comparable properties in the subject’s neighborhood on the last day of that period, without regard to how long those properties have been on the market.

If a property is an active listing on the last day of multiple time periods, then it should be counted in each time period.  For example, suppose a comparable home in the subject’s neighborhood was listed for sale eleven months prior to the effective date of the appraisal, was on the market continuously, and was still an active listing on the effective date of the appraisal.  Such a listing would be included in the total number of comparable active listings in all three time periods.

If the entries on this line are based on when a property was placed on the market rather than the total number of listings, the result will be that the Months of Housing Supply reported on the next line will be incorrect.

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