Un supported adjustments

[J Grant]

Imo, these tools seem more applicable to time adjustments, and I would only use a software program that allowed me manual control over the data that is entered,

 

[Surf Cat]

Imo, these tools seem more applicable to time adjustments, and I would only use a software program that allowed me manual control over the data that is entered,

Like some here, I am a fan of and primarily use Spark. It works very well for data 12 months back for time adjustments. There's a more recent inclusion I discovered here on the Forum, Valuation Labs, which is free to use (refreshing in comparison to many appraisal tools that want to gouge the appraiser). I created a custom export from my MLS and gave it a whirl. My initial export did not work so, I sent it to the creator of the program and they got back to me very quickly. You have to be dead accurate and label the export "exactly" like example CVS.....no extra spaces (like I had) or it won't work.

It requires 2 years of data for it to start to calculate. The time adjustments in comparison to Spark I found to be different. Seeing how I've only used it a couple of times.....it might be user error. It's a pretty slick tool although I have to play with it some more so, the jury's still out on that one. Another tool I use to verify time adjustments is "InfoSparks" which is included with my MLS. It too produces different results however, it's more broad and you can't dial in the exact range of GLA, year built, and market area like you can with Spark. But you can go 5 years back in time which is beneficial.

Different tools, different results. It's hard to meet the demand of the new trend of "exactness" that some clients want. Case in point, the sample of the way the GSE's want time adjustments in that graph where there was a different time adjustment each month.

Appraising Real Estate isn't an exact science. As I garnered more experience in doing this... I thought that the appraisal should be concluded with a tight range, not an "exact" number. That way, the lender has some wiggle room instead of being handcuffed to a single, solitary, number. I mean....that's what they're doing now with waivers.

 

[J Grant]

Like some here, I am a fan of and primarily use Spark. It works very well for data 12 months back for time adjustments. There's a more recent inclusion I discovered here on the Forum, Valuation Labs, which is free to use (refreshing in comparison to many appraisal tools that want to gouge the appraiser). I created a custom export from my MLS and gave it a whirl. My initial export did not work so, I sent it to the creator of the program and they got back to me very quickly. You have to be dead accurate and label the export "exactly" like example CVS.....no extra spaces (like I had) or it won't work.

It requires 2 years of data for it to start to calculate. The time adjustments in comparison to Spark I found to be different. Seeing how I've only used it a couple of times.....it might be user error. It's a pretty slick tool although I have to play with it some more so, the jury's still out on that one. Another tool I use to verify time adjustments is "InfoSparks" which is included with my MLS. It too produces different results however, it's more broad and you can't dial in the exact range of GLA, year built, and market area like you can with Spark. But you can go 5 years back in time which is beneficial.

Different tools, different results. It's hard to meet the demand of the new trend of "exactness" that some clients want. Case in point, the sample of the way the GSE's want time adjustments in that graph where there was a different time adjustment each month.

Appraising Real Estate isn't an exact science. As I garnered more experience in doing this... I thought that the appraisal should be concluded with a tight range, not an "exact" number. That way, the lender has some wiggle room instead of being handcuffed to a single, solitary, number. I mean....that's what they're doing now with waivers.

Note, Danny from the GSE's commented here that they do not fully stop want or require ) the time adjustments on that graph - yet the graph was posted on their website as an example, so go figure. They do seem to want a more detailed statistical time adjustment shown than the market conditions grid.

I found the GSE claim that not enough appraises made time adjustments weird. The market has been stable for the last 18 months in many areas - so where does a time adjustment apply? The letter then stated that a lack of applying time adjustments in minority areas led to under-valuations!

Which makes no sense. Perhaps they did not get the notice that a new sheriff is in town ( Trump) who will be going after DEI-related govt things - I am not a fan of his, but in some cases, it is warranted.

 

[Terrel L. Shields]

The letter then stated that a lack of applying time adjustments in minority areas led to under-valuations!

Yep, I have to take that with a rather jaundiced eye. I mean unless prices are changing at breakneck speed lack of a 1 or 2% adjustment isn't going to move the needle much. Our market when moving up, was typically 4-6% per year. That's what? half a percent or less per month? Six-month sale 2-3% at max?

I have never seen a market move so fast that its momentum was more than a year or two. When a big announcement of a theme park in NE Oklahoma land prices zoomed up. But the promoters had already bought the land they wanted using straw buyers. Everyone raised their prices but no one wanted to buy it. Prices then begin to float downward.

 

[litchke]

I don't put the raw data into my report for 2 reasons.
1. There is too much temptation to think, "here is the data, you figure it out", rather than taking the time to explain how you arrived at the adjustments.

2. As I have said here many times before, "people have just enough information to be dangerous". Putting raw data into reports...and doing a poor or incomplete explanation of what it means...... results in the reader making their own conclusions of what it means. If you just say, " Spark/Synapse was used to estimate the adjustments", the reader can say, "well I see the data and I say it means something different".

could you provide an example of something you would say for an adjustment that you applied?