Weighted Average for Reconciliation of Sales Approach.

[Frederick R. Ruffell]

Do any of the SFREP users know if Appraise-It Pro has a Weighted Average feature for the sales approach reconciliation?
ACI and Alamode do.

 

[gringogigante]

Do any of the SFREP users know if Appraise-It Pro has a Weighted Average feature for the sales approach reconciliation?
ACI and Alamode do.

I'm trying to figure that out as well. Following.

 

[Terrel L. Shields]

A mechanical weighted average? I mean why would you need that?

 

[Fernando]

We're not AI. We're human appraisers and we reconciliate to best of our knowledge.

 

[BRCJR]

We're not AI. We're human appraisers and we reconciliate to best of our knowledge.

I see final opinion of value being 425,200, for example. That, to me, implies such a level of accuracy I wonder how well that could be defended. I always thought the computer figured it out and not the Appraiser.

 

[Fernando]

Buyers don't make purchases based on AI thinking. Appraisers better to see the subjectivity and other nuances from buyers than computers.

 

[gringogigante]

A mechanical weighted average? I mean why would you need that?

Because basing your opinion value on something reasonably thought it is better than putting a randomly chosen number in there. The weighted average give more weight to comps that are more similar (as a percentage) and less to those that aren't. Then it spits out a number, et voila. A logically thought out final reconciliation.

 

[Terrel L. Shields]

The weighted average give more weight to comps that are more similar

Who determines that? Merely picking one with the least adjustments or smallest net is a mechanic process.

 

[Tim Hicks (Texas)]

Weighted average based on comps that are more similar as a "percentage" may not be the most accurate of conclusions. What if you have the smallest (or largest) house sold in the subdivision in the past year, but can only bracket it by using sales outside the subdivision? The most similar sales are more likely to have larger adjustments. What if you have a pool or workshop and you have to go distances for these features for bracketing purposes, but the most similar sales have more adjustments. What if all the sales in the subdivision have a pool or workshop and your sale does not? What if the most similar sale with regard to quality and/or condition is a much smaller or larger home? You should weight comparable sales based on the most similar sales not the least amount of adjustments.

 

[Surf Cat]

Because basing your opinion value on something reasonably thought it is better than putting a randomly chosen number in there. The weighted average give more weight to comps that are more similar (as a percentage) and less to those that aren't. Then it spits out a number, et voila. A logically thought out final reconciliation.

What if the dated sale of 18 months which is on the subject's street, is a model match, and has the highest gross adjustment percentage due to its time adjustment however, is at the high end of the adjusted range....then what? Would you still come in at the weighted average?