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Overall Trends

For each line item in the 1004MC data grid, there are corresponding boxes for the appraiser to indicate the overall trend for the data reported on each line.  The boxes are arranged so that indicators in the far left column reflect positive change, indicators in the far right column reflect negative change, and indicators in the center column reflect stability.

Common Issue

Relying Only on 1004MC Data Grid for Trends

In selecting the overall trend, first consideration should be given to the corresponding data that is presented on that line in the 1004MC data grid.  However, if the availability of comparable properties in the subject’s neighborhood is limited, then the data may be insufficient to determine the trend.

 

 

 

Looking at this data, there is a clear pattern of increase in the Median Comparable Sale Price.  However, there is only one comparable sale reported in each time period.  This is clearly not sufficient data for trend analysis.

In such a case, the appraiser must augment the data in the 1004MC data grid with additional information that can be used to evaluate the trend in median sale price.  The nature of the data that is considered is at the discretion of the appraiser, and might include things such as:

  • Analysis of data in other nearby neighborhoods
  • Analysis of a broader data set within the subject’s neighborhood (i.e. all sales rather than just comparable sales)
  • Consideration of market studies from local, regional or national sources
  • Any other relevant data

Any additional data that is used to support the appraiser’s findings related to overall trends must be summarized in the report.  If there is sufficient room, comments may be included in the narrative sections of the 1004MC, or in an addendum.

As noted earlier, support for the conclusions must be included in the report.

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