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The Calculation Process

We have carefully reviewed Fannie Mae and Freddie Mac documentation and surveyed tenured appraisers across the country to arrive at the best practices for arriving at the 1004MC results and corresponding market statistics.

Our desire is for our calculation process to be transparent – so you can be assured that our results are accurate.

Calculation Check File

To assist in this transparency we offer a Calculation Check file, which you can download and run through the 1004MC Service engine to verify the results are accurate.

Download the Calc Check file and go to the 1004MC Service in ClickFORMS. Select California as the state, then scroll all the way down and select 1123 - 1004MC - Calculation Verification File for the MLS system, then upload this verification file. Make sure the Effective Date (Listing Search Date) is 12/31/2020 when you run it through the 1004MC Service.

The Calc Check file contains the following:

  • 12 Sold Records – Each has a list date of the 10th of each month, beginning January 2020. Each sold record has sold date of the 20th of the same month it was listed. The list price is $700,000 and the Sold Price is $715,000. Each sale was on the market for 5 days (list date to pending date).
  • 7 Active Records – Each record has a list date on the 5th of each month, beginning June 2020. Each active record has a list price of $710,000.
  • 1 Pending Sale – the pending sale has a list date of 12/1/2020, a contract / pending date of 12/10/2020, and a list price of $705,000

ClickFORMS 1004MC Service will produce the following statistics:

A common question is how the listing counts are arrived at. Each sold record is not an active listing in the period it was sold.

  Prior 7-12 Months Prior 4-6 Months Current-3 Months
Total # of Comparable Sales (Settled)
6
3
3
Absorption Rate (Total Sales/Months)
1
1
1
Total # of Comparable Active Listings
1
4
7
Months of Housing Supply (Total Listings/Ab. Rate)
1
4
7

Inventory Analysis (counting 0% of Pending sales as Settled)

  Prior 7-12 Months Prior 4-6 Months Current-3 Months
Total # of Comparable Sales (Settled)
6
3
3
Absorption Rate (Total Sales/Months)
1
1
1
Total # of Comparable Active Listings
1
4
7
Months of Housing Supply (Total Listings/Ab. Rate)
1
4
7

The Median Sale Price as % of List Price is determined by finding the median of Sale Price divided by List price of each Sold/Settled property in a given period.

  Prior 7-12 Months Prior 4-6 Months Current-3 Months
Median Comparable Sale Price
$715,000
$715,000
$715,000
Median Comparable Sales Days on Market
5
5
5
Median Comparable List Price (includes active)
$710,000
$710,000
$710,000
Median Comparable Listing Days on Market
25
72
117
Median Sale Price as % of List Price
102%
102%
102%
 

Below is a row-by-row detail of the calculation process used to arrive at the results.

Total # of Comparable Sales (Settled)

  Prior 7-12 Months Prior 4-6 Months Current-3 Months
Total # of Comparable Sales (Settled)
6
3
3
Absorption Rate (Total Sales/Months)
1
1
1
Total # of Comparable Active Listings
1
4
7
Months of Housing Supply (Total Listings/Ab. Rate)
1
4
7

This row displays all sold records that closed / settled within the given time period.

 

Absorption Rate

  Prior 7-12 Months Prior 4-6 Months Current-3 Months
Total # of Comparable Sales (Settled)
6
3
3
Absorption Rate (Total Sales/Months)
1
1
1
Total # of Comparable Active Listings
1
4
7
Months of Housing Supply (Total Listings/Ab. Rate)
1
4
7

The Absorption Rate is is calculated by dividing the total number of sales for each time period by the months in the time period. This is six months in the Prior 7-12 time period and three months in the Prior 4-6 & Current – 3 Month time periods.

 

Total # of Comparable Active Listings

  Prior 7-12 Months Prior 4-6 Months Current-3 Months
Total # of Comparable Sales (Settled)
6
3
3
Absorption Rate (Total Sales/Months)
1
1
1
Total # of Comparable Active Listings
1
4
7
Months of Housing Supply (Total Listings/Ab. Rate)
1
4
7

Each field represents the number of Active Listings on the Last Day of the period.

This means if a property was listed during the Prior 7-12 month period and sold in the Current – 3 month period it would be counted as a Active Listing in the Prior 7-12 and Prior 4-6 Months period then as a Sale in the Current – 3 months time period.

 

Months of Housing Supply

  Prior 7-12 Months Prior 4-6 Months Current-3 Months
Total # of Comparable Sales (Settled)
6
3
3
Absorption Rate (Total Sales/Months)
1
1
1
Total # of Comparable Active Listings
1
4
7
Months of Housing Supply (Total Listings/Ab. Rate)
1
4
7

This is calculated by dividing the total number of listings by the absorption rate. The resulting number indicates how many months of inventory were on the market during each time period.

 

Median Comparable Sale Price

  Prior 7-12 Months Prior 4-6 Months Current-3 Months
Median Comparable Sale Price
$715,000
$715,000
$715,000
Median Comparable Sales Days on Market
5
5
5
Median Comparable List Price (includes active)
$710,000
$710,000
$710,000
Median Comparable Listing Days on Market
25
72
117
Median Sale Price as % of List Price
102%
102%
102%

This field shows the median sale price for the properties that actually sold (have a sold status) during each time period.

 

Median Comparable Sales Days on Market

 
Prior 7-12 Months Prior 4-6 Months Current-3 Months
Median Comparable Sale Price
$715,000
$715,000
$715,000
Median Comparable Sales Days on Market
5
5
5
Median Comparable List Price (includes active)
$710,000
$710,000
$710,000
Median Comparable Listing Days on Market
25
72
117
Median Sale Price as % of List Price
102%
102%
102%

This field shows the median days on market for the properties that actually sold (have a sold status) in given time period.

 

Median Comparable List Price (includes active)

 
Prior 7-12 Months Prior 4-6 Months Current-3 Months
Median Comparable Sale Price
$715,000
$715,000
$715,000
Median Comparable Sales Days on Market
5
5
5
Median Comparable List Price (includes active)
$710,000
$710,000
$710,000
Median Comparable Listing Days on Market
25
72
117
Median Sale Price as % of List Price
102%
102%
102%

This field displays the median list price for all properties in the given time period.

 

Median Comparable Listing Days on Market (includes active)

 
Prior 7-12 Months Prior 4-6 Months Current-3 Months
Median Comparable Sale Price
$715,000
$715,000
$715,000
Median Comparable Sales Days on Market
5
5
5
Median Comparable List Price (includes active)
$710,000
$710,000
$710,000
Median Comparable Listing Days on Market
25
72
117
Median Sale Price as % of List Price
102%
102%
102%

This field shows the median days on market for all Sold/Settled properties within the given time period.

The Median Sales Price to List Price Ratio is measured by calculating the median from the list of ratios for the sold comparables chosen for analysis and NOT by dividing the overall Median Sales Price by the overall Median List Price on the form.

 

Pending Sales

Pending sales can be counted as sold, active, or ignored if neither option is selected. If you choose “Count pending sales as settled sales” the 1004MC service will consider the Pending Date to determine when the sale happened. If you choose “Count pending sales as active listings” the 1004MC service will consider the Sold Date to determine when the sale happened. you don’t select either option, the Pending Sales in your export file will be ignored. This will have an impact on the number of settled sales and active listings you see for each period.

 

Time Periods

The three periods for the 1004MC are divided up by deducting calendar months. So if today was June 9th, three months back would be March 10th. This means sometimes the 0 – 3 month period could be 89, or 91 days, not necessarily 90 days. This same rule applies to the 4 – 6 month period and 7 – 12 month period.

 

DOM Calculations

Sold DOM: Pending Date (-) Listing Date
IF PENDING = ACTIVE: Listing DOM in current period = Effective Date 'Listing Search Date' (-) Listing Date
IF PENDING = SOLD: Pending Date (-) Listing Date
Listing DOM Last Day of that Period (-) Listing Date

 

Important notice: It is the responsibility of the appraiser to verify all data and calculations are true and correct. ClickFORMS is not responsible for the accuracy of your MLS data.

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