This is a pretty niffty detailed chart for finding time adjustments, we are done.

[J Grant]

From true footage. Having to adjust each one separately, where the fee % increase go.
View attachment 95177

I think the chart of dots ( like a surrealist painting ) is misleading, and this kind of sale-by-sale, month-by-month adjustment is dangerous. Freddie or Fannie used a carefully curated chart as an illustration, then claimed it does not require or endorse adjustments to be made that way but is an example - leaving themselves an out.

Appraisers trying to replicate it to satisfy an imaginary requirement are leaving themselves open to problems.

A market does not jump up and down month by month like that ( typically ) . The points are individual sales within a month. which sales are they, and how many are used?

A market can change or reverse trends at any time within a year, and that can be adjusted for, such as adjusting up the first six months when prices rose but no adjustments in the last six months when the market was flat.

But adjusting each sale at different rates because a price shows X- Even if a chart or graph generates it , that does not mean that it is a credible base for a time adjustment - imo.

 

[Kentucky Jack]

From true footage. Having to adjust each one separately, where the fee % increase go.
View attachment 95177

Do you subscribe to that service? I am interested in it because I'm already downloading data from MLS to Excel and using straight-line, but this seems to be the way that we will have to do it from now on.

 

[alebrewer]

From true footage. Having to adjust each one separately, where the fee % increase go.
View attachment 95177

Yeah - I usually see several hundred data points for my market analysis as well...

 

[J Grant]

Do you subscribe to that service? I am interested in it because I'm already downloading data from MLS to Excel and using straight-line, but this seems to be the way that we will have to do it from now on.

Nobody and Nothing says, "this is the way we have to do it from now on."

Freddie posted the chart as an example, and D Wiley of Freddie Mac, who occasionally posts here, verified that.

I got an email from the company that produces what looks like the software for this ( true Footage) and I watched dhte video _ My impression is it is awful - a heat map and dots, separting regions by predicting what a property would have sold for and other odd things - overly complex and IMO less reliable than a straight line trend unless one spent hours qualifying the data = and most people want the fast output chart or graph to satisfy the overseers and they cont; give much of a thought as to what goes into it or how it is done, which is the dangerous part of asking for this kind of support -


A straight line trend can change over the course of a year, such as the market shows increasing prices for 8 months, then goes flat for 4 months, so we might adjust for the 8 months up and the next 4 months with no adjustment - and explain, instead of this overly sensitive month by month using data that may or may not be reacting to individual sales within a given month, none of the sales vetted of course because who has time for that?

All of these programs do need some time from the appraiser to qualify the data to some extent. Otherwise, they can produce misleading results, even if they look pretty and seem "accurate" - accurate compared to what? These charts reference themselves mathematically so they are accurate in that sense - do they reflect the market or market value ? Idk, that takes time to analyze,- which contradicts what some hope for, which is quick input, download and dump in the report

 

[Tom D]

If the chart produces bad results, i certainly can change my data, in any chart i use, to show the results i want to and to support my brilliant opinion. Just stating what we learned from the 1004mc.

Fannie was upset, that over the last several years, about appraisers not showing any time adjustments. So they now want you to show them something, nothing perfect, but showing why there was or, was not, a time adjustment warranted.