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Line 7, Median Comparable List Price

For each time period, the appraiser should report the median list price for the listings that are active as of the last day in each time period (as reported on the third line).

 

 

The historic listing information required to complete the entries in the first two columns 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 data. Refer to the discussion of software tools later in this publication for more information on that topic.

Common Issues

Using Both Sales and Listings for the Calculation

The median list price reported for each time frame should reflect only the listings reported for the corresponding time frame.  A common error is to include both the listings and the sales that occurred during the corresponding time frame.  The correct methodology for completing these fields has been confirmed through direct correspondence with Fannie Mae

Many who use both listings and sales for the calculation do so because they are not calculating the Median Sale Price as a % of List Price correctly.  Refer to the section on calculating the Median Sale Price as a % of List Price for additional information.

Median Comparable List Price is Outside Range Reported on Page Two

The number of comparable listings in the subject’s neighborhood reported on line three of the 1004MC data grid should be the number of listings on the last day in each period.  Therefore, the number of listings reported in the Current – 3 Months column should be the number of active listings as of the effective date of the appraisal.  Given that, the median list price reported in the Current – 3 Months column must fall within the range of list prices reported at the top of page two.

Example of Incorrect Reporting

Page 2

1004MC

If there are seventeen current listings of comparable properties in the subject’s neighborhood, and the asking prices range from $400,000 to $600,000, then it is mathematically impossible for the median list price for the current comparable listings in the subject’s neighborhood to be $759,500.

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