How many comps do you use?

[J Grant]

Don't conflate algorithms with tools. If an algorithm is picking the data, deciding what analysis will be conducted and spitting out a rate, with the appraiser having no understanding where that number came from, that is very different from an appraiser using something to analyze data that the appraiser selected. When I did group data analysis I had spreadsheets set up to analyze data I extracted from my local MLS. The fact that I did not do the math by hand does not diminish the results.

I understand the difference between a tool and an algorithm. You used a tool to crunch the math, but you vetted sales, picked them, and developed a spreadsheet. Appraisers with the right software can have their vetting, analysis, and comp selection done with the most cursory, minimal input from the appraiser. (if an appraiser wants to cheat in that manner)o.

The problem is that the software now is not just a tool, it can be used to do the appraiser;s work for them with minimal input from the appraiser (if an appraiser wants to cheat in that manner) The question then is, what oversight will there be to identifiy it or hold accountable appraisers who do it?

Without oversight, the cheating can rise to mass scale because it will be hard to identify when an appraiser did so, and the economic system rewards it.

 

[DWiley]

The problem is that the software now is not just a tool, it can be used to do the appraiser;s work for them with minimal input from the appraiser (if an appraiser wants to cheat in that manner)

Well, that is not a new challenge. Even basic formsware can do some of that. It comes down do the appraiser actually doing what he/she swears he/she is doing when the certification is signed.

 

[TerryRohrer]

The AF tried unsuccfully to explain COV to me last year, although it seems like an extremely meaningful metric. Please take 5 min to explain the %age of any one of the factors/features that you mentioned above. Thanks.

Standard deviation is a measure of the dispersion or spread of the dataset from the average of the dataset. It is simply a number. COV is Standard Deviation / Average of the dataset, so converts the spread to a percentage. In my view, that is more intuitive (without mathing by the reader) than two numbers. So, in the above example, the individual prices differ from the average price by about 5%.

 

[Non Sequitur]

Just use fancy software to put in as many as you want and let it adjust for you. Here’s an example from one of the national firms and their software making its rounds on FB:

 

[J Grant]

Above post 74,
what jumps out is the fact that this subject is not bracketed - none of the 3 sales on grid are the same size of the subject or smaller. Two of the "comps" are considerably larger and 2 comps are three bedrooms ( subject is a two bedroom. )

without access to the data hard to tell if more similar sales are aavilable or not.
no upgrades are listed or adjusted for -it takes time to look at the MLS interior photos.
There are odd over precise line item adjustments for sf lot and date sold.

Other than that - who knows?

 

[Dublin ohio]

Just use fancy software to put in as many as you want and let it adjust for you. Here’s an example from one of the national firms and their software making its rounds on FB:

View attachment 110599

Declining market and comes in at least $20K below contract, Ouch!

 

[chad hampton]

Just use fancy software to put in as many as you want and let it adjust for you. Here’s an example from one of the national firms and their software making its rounds on FB:

View attachment 110599

I can’t believe how many people use that adjustment software and think it’s accurate. Although I’m not sure what choice there is, experience appraisers are being removed from the profession and being replaced with inexperienced ones. Not only don’t they have any appraisal experience, Most of them have very little real estate experience. Not sure what choice they have other than trust the software they’re paying for to give them right answers.

 

[chad hampton]

I love adjustments that come all the way down to the exact dollar. I learned about significant digits in middle school.

 

[djd09]

100 dollar adjustment for 53 sq ft lot size...i cant stop laughing

 

[chad hampton]

100 dollar adjustment for 53 sq ft lot size...i cant stop laughing

It's quite a dilemma when your computer program tells you to make a $100 adjustment, but you have no experience to rely on

I almost feel bad for the parea graduates. Took an education class and the masters called it experience.