How long the comps we can go back?

[Fernando]

Currently, I have issue with too many comps.
Have prices changed from 6 months ago (comps closer in location)?
Or should I use comps within 2 months ago which would reflect the change in mortgage rates and the commission changes?
I'll use many comps to see where the numbers fall.

 

[J Grant]

Yes. The same floor plan, about 100 feet away. IF use this as best comps, it could reach contract price. But no matter how, I can't use 26 months sold comp as the best to set final value, right? Last month market price is similar to 2 years ago. So I can add it into grid with no or zero time adjustment? Set it as less weighted? Also, I have to consider other recent comps as well, right? 2 or 3 comps are withing same complex with a little different floor plan, sold in last 2 months.

If the 2 or 3 comps within same complex with a little different floorplan are otherwise very similar to the subject and they sold at a lower price than in 2022, then how can you say prices are the same now as they were then? I appraised in 2022 and it was cray, 3% interest rates led to multiple bidding wars and properties selling way above list price. In my area, prices are strong again in some segments but do not see multiple bids etc.

If It were me (from what I can tell from afar), I might use the old 2022 sale as a comp to support the higher end of a value reconciliation but I doubt I would use it as the support of the contract price.

 

[Tom D]

As i always say. You don't have to do every appraisal you get sent.
This appraisal is an existential threat. You never want your appraisal to be sent to the state by an angry buyer. Then the state has all day to find mistakes, to fine you And probable call you a systemic racist.

The potential problems are worth it because you got how much to do it. From famous existential novel, my advice is be. run rabit run.

This is the only advice you should be given to not die on this hill.
Haven't you read enough threads about a problem being made when there isn't any, and the state gets involved.

 

[sputnam]

As i always say. You don't have to do every appraisal you get sent.
This appraisal is an existential threat. You never want your appraisal to be sent to the state by an angry buyer. Then the state has all day to find mistakes, to fine you And probable call you a systemic racist.

You definitely can say 'No'. It is harder if you are working for someone else. In my earlier days as an appraiser, I worked for an appraiser who never declined any assignment.. except maybe if they wouldn't pay enough. It was both bad and good for me. The bad is pretty obvious. The good is I had to work through a lot of different problems and doing so made me a more experienced appraiser. Like they say, you can have 10 years of experience... or... you can have 1 year of experience 10 times.

 

[Cob]

It amazes me some of the people on AF that have, Professional Status: Certified Appraiser next to their name!!!!

 

[TerryRohrer]

It amazes me some of the people on AF that have, Professional Status: Certified Appraiser next to their name!!!!

Makes you wonder why anyone sees a need to lower the bar even more.

 

[Terrel L. Shields]

Makes you wonder why anyone sees a need to lower the bar even more.

To a point. I mean I understand that a college degree is overrated since the requirements are such that what degree does not matter. So, a degree in Mass Media, Performing Arts, Anthropology (YouTube standout-perhaps the largest channel at times- is Scotty Kilmer. Scotty has an anthropology degree but worked as a mechanic for lack of any better job.), psychology, early childhood education, etc etc. are basically worthless to an appraiser. These degrees are so remote to what an appraiser does, that a single year of select courses would better serve as background. A-English (we all get out of practice there.) B - basic math and statistics and fundamentals thereof, C- Spreadsheet & Word Processing skills, D - Construction materials and building, E - Logic and problem solving, F- basic legal functions - deeds, mortgages, state laws, lending laws and regulations. Those 6 full seamster classes would expose someone to 90% of an appraiser's skillset.

 

[Carnivore]

To a point. I mean I understand that a college degree is overrated since the requirements are such that what degree does not matter. So, a degree in Mass Media, Performing Arts, Anthropology (YouTube standout-perhaps the largest channel at times- is Scotty Kilmer. Scotty has an anthropology degree but worked as a mechanic for lack of any better job.), psychology, early childhood education, etc etc. are basically worthless to an appraiser. These degrees are so remote to what an appraiser does, that a single year of select courses would better serve as background. A-English (we all get out of practice there.) B - basic math and statistics and fundamentals thereof, C- Spreadsheet & Word Processing skills, D - Construction materials and building, E - Logic and problem solving, F- basic legal functions - deeds, mortgages, state laws, lending laws and regulations. Those 6 full seamster classes would expose someone to 90% of an appraiser's skillset.

Yes, I agree, but would add this reasoning. If an appraiser would take those classes and add other required classes to secure a four year degree, this would give an appraiser an easier escape route into another profession or some other full time career with bennies. The downside of that path is loss of control over when you work and when you can take time off for personal matters.

Does education level correlate with income? It's important to note the chart below is not factoring in retirement, health care benefits, unemployment benefits, pay raises and there are other factors

 

[Terrel L. Shields]

what is a "professional degree" that is not a PhD or Masters?

 

[TerryRohrer]

To a point. I mean I understand that a college degree is overrated since the requirements are such that what degree does not matter. So, a degree in Mass Media, Performing Arts, Anthropology (YouTube standout-perhaps the largest channel at times- is Scotty Kilmer. Scotty has an anthropology degree but worked as a mechanic for lack of any better job.), psychology, early childhood education, etc etc. are basically worthless to an appraiser. These degrees are so remote to what an appraiser does, that a single year of select courses would better serve as background. A-English (we all get out of practice there.) B - basic math and statistics and fundamentals thereof, C- Spreadsheet & Word Processing skills, D - Construction materials and building, E - Logic and problem solving, F- basic legal functions - deeds, mortgages, state laws, lending laws and regulations. Those 6 full seamster classes would expose someone to 90% of an appraiser's skillset.

I am more concerned about the removal of both educational and experience requirements at the same time. If no qualifications are necessary, why continue the facade of regulation?