Market Conditions Addendum to the Appraisal Report

FHA/VA Case #

Client #

File #

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

Market Research & Analysis	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.). null
	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). null
	Cite data sources for above information. null
	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. null

CONDO CO OP PROJECTS	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. null
	Summarize the above trends and address the impact on the subject unit and project. null