1004mc Market Conditions Addendum to the Appraisal Report

Market Conditions Addendum to the Appraisal Report

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The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject
neighborhood. This is a required addendum for all appraisal reports with an effective date on or after April 1, 2009.
Property Address
City
State
ZIP Code
Borrower
Instructions: The appraiser must use the information required on this form as the basis for his/her conclusions, and must provide support for those conclusions, regarding
housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent
it is available and reliable and must provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an
explanation. It is recognized that not all data sources will be able to provide data for the shaded areas below; if it is available, however, the appraiser must include the data
in the analysis. If data sources provide the required information as an average instead of the median, the appraiser should report the available figure and identify it as an
average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria that would be used by a prospective buyer of the
subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, foreclosures, etc.
Inventory Analysis
Prior 7–12 Months Prior 4–6 Months
Current – 3 Months
Overall Trend
Total # of Comparable Sales (Settled)
Increasing
Stable
Declining
Absorption Rate (Total Sales/Months)
Increasing
Stable
Declining
Total # of Comparable Active Listings
Declining
Stable
Increasing
Months of Housing Supply (Total Listings/Ab.Rate)
Declining
Stable
Increasing
Median Sale & List Price, DOM, Sale/List %
Prior 7–12 Months Prior 4–6 Months
Current – 3 Months
Overall Trend
Median Comparable Sale Price
Increasing
Stable
Declining
Median Comparable Sales Days on Market
Declining
Stable
Increasing
Median Comparable List Price
Increasing
Stable
Declining
Median Comparable Listings Days on Market
Declining
Stable
Increasing
Median Sale Price as % of List Price
Increasing
Stable
Declining
Seller-(developer, builder, etc.) paid financial assistance prevalent?
Yes
No
Declining
Stable
Increasing
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.).

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

Yes

No If yes, explain (including the trends in listings and sales of foreclosed properties).

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Cite data sources for above information.
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Summarize the above information as support for your conclusions in the Neighborhood section of the appraisal report form. If you used any additional information, such as
an analysis of pending sales and/or expired and withdrawn listings, to formulate your conclusions, provide both an explanation and support for your conclusions.

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If the subject is a unit in a condominium or cooperative project , complete the following:
Project Name:
Subject Project Data
Prior 7-12 Months Prior 4-6 Months
Current – 3 Months
Overall Trend
Total # of Comparable Sales (Settled)
Increasing
Stable
Declining
Absorption Rate (Total Sales/Months)
Increasing
Stable
Declining
Total # of Active Comparable Listings
Declining
Stable
Increasing
Months of Unit Supply (Total Listings/Ab. Rate)
Declining
Stable
Increasing
Are foreclosure sales (REO sales) a factor in the project?
Yes
No If yes, indicate the number of REO listings and explain the trends in listings and sales of
foreclosed properties.

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E Summarize the above trends and address the impact on the subject unit and project.
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Signature
Appraiser Name
Company Name
Company Address
State License/Certification #

Signature
Supervisory Appraiser Name
Company Name
Company Address
State License/Certification #

State

Email Address
Freddie Mac Form 71

State

Email Address
March 2009

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Fannie Mae Form 1004MC

March 2009