Across The Board Time Adjustments?

[DARREN GODFREY]

And this ladies and gentlemen is why the market gets inflated , you guys are just quoting an increased market without any hard money proof. You are actually willing it .

 

[residentialguy]

And this ladies and gentlemen is why the market gets inflated , you guys are just quoting an increased market without any hard money proof. You are actually willing it .

No, you are the reason appraisers get a bad name. We report Market Value. read it. Inflating it...deflating it = both wrong.

 

[DARREN GODFREY]

And this ladies and gentlemen is why the market gets inflated , you guys are just quoting an increased market without any hard money proof. You are actually willing it .

BS. We are to show what the most probable price the property will sell for as of the effective date. We are not the gatekeepers of the market...we just report it. You need to take your police hat off and wear your appraiser hat. If the most probable price is greater than all other sales prior, that's what you report.

Police hat...the most probable price is then reduced to the amount you can finance given an appraisers signature . Then this appraiser comes in and says , well I see the market is increasing so I will just go along...in fact I will take the data from the sale comparison approach and say because the market looks like it's increasing then that 5k mark up is justifiable .
You are wrong bro. Do you walk into a store and offer 2% more for a product because you think it's nifty ...nope.
Now if it was the last nifty item and 5 people were trying to buy it then would you offer 2% more....yes.
Maybe you should look at the sales comparison approach more carefully....news flash it's based off of closed sales. I understand your reasoning but if no multiple contracts are being offered all over the place then you as an appraiser are raising values... You are doing it by allowing them to finance ever increasing amounts.

 

[hastalavista]

Yeah, well if 3 months equals 10k in a market where homes are being marketed for up to 180 days, it wouldn't make since. In addition if we did that with every non stable market we would be actually dictating the market in a way.

If you are making across the board time adjustment's and the marketing times aren't in the -20 day mark I would say you have far more issues than worrying about the reviewer buddy.

I love this site due to it being a wealth of knowledge, however. They normal internet trend of not really being helpful and digging at posters is not cool at all.

Re-read your posts from the first one and you tell me at what point they introduce the information you are relying on here?
Because what I read was...
Post #1

the OA used a time adjustment on every single closed sale . I feel like that is predicting the future in that, should not the market speak for itself.

(i.e., across the board market conditions are flawed)
Post #3

Yeah, It seems he is hitting a number. I agree that it is an increasing market , however the sales should tell the story.

Ok, you agree the market is increasing but it seems to you like he is hitting a number by making market condition adjustments in a rising market.
Post #3 again

The OA used like 10 paragraphs to defend this adjustment..

Sounds like more than just the 1004mc to me. But, there is more...
Post #3 again

...the problem here is I wouldn't value a 500k range property 10k above all closed comparable sales prices. In fact the only comparable that supported his opinion of value is an active listing.

So a rising market, of which you agree, and "defense for the market adjustment" with 10 paragraphs of analysis, and a listing which is consistent with the value, but you wouldn't do it that way so there is an issue. It must be wrong because its not how you would do it.

Did I misrepresent your posts so far?

So then in Post #6 I give you my opinion: You can have across the board market condition adjustments, adequately supported, all day long. The recognized methodology would tell you that you should have them if they reflect the market. So I ask you if the report supported the adjustment or if you just don't believe it is appropriate to have across the board adjustments.

Then you say in Post #10

So when you look at on paper it looks like yes sales did increase by X amount of dollars.
Whenever I come up with skewed numbers like this due to foreclosures , flips etc. I take a sample from every quarter to see sample from every period to make my final decision. He obviously didn't do this ...it makes the across the board adjustment flat out wrong ....

Ok, so let me ask you this: If the market is increasing (which is something you do agree with) but the 2% adjustment above the highest closed-sale comparable is something you don't agree with (I'm assuming you have to provide your own opinion of value?) what is the market-condition adjustment for the increasing market you've concluded and how does it affect the adjusted price of the comps since, at least the one thing the original appraiser did do was

The good thing is , I don't have to look for comps . He did a great job on that .

???

 

[residentialguy]

You seem like you are good at retrospective appraisals.

 

[DARREN GODFREY]

Re-read your posts from the first one and you tell me at what point they introduce the information you are relying on here?
Because what I read was...
Post #1 (i.e., across the board market conditions are flawed)
Post #3
Ok, you agree the market is increasing but it seems to you like he is hitting a number by making market condition adjustments in a rising market.
Post #3 again
Sounds like more than just the 1004mc to me. But, there is more...
Post #3 again
So a rising market, of which you agree, and "defense for the market adjustment" with 10 paragraphs of analysis, and a listing which is consistent with the value, but you wouldn't do it that way so there is an issue. It must be wrong because its not how you would do it.

Did I misrepresent your posts so far?

So then in Post #6 I give you my opinion: You can have across the board market condition adjustments, adequately supported, all day long. The recognized methodology would tell you that you should have them if they reflect the market. So I ask you if the report supported the adjustment or if you just don't believe it is appropriate to have across the board adjustments.

Then you say in Post #10

Ok, so let me ask you this: If the market is increasing (which is something you do agree with) but the 2% adjustment above the highest closed-sale comparable is something you don't agree with (I'm assuming you have to provide your own opinion of value?) what is the market-condition adjustment for the increasing market you've concluded and how does it affect the adjusted price of the comps since, at least the one thing the original appraiser did do was


???

Lol...here we go again ...you guys keep missing the point that he used an REO in his MC in the first period ...one that sold for 50k less.
So he based his on an opinion of data he compiled using something that he would not use in his report.
So if it was not a foreclosure market ...how is using a foreclosure in his market assessment gonna effect the outcome.
In other words he had solid data , comps all over the place but putting that one REO comp in his MC threw all the market data off by the amount of 50k. Leading the reader to believe that the market was increasing by 6 percent ...However if you took 2 similar transactions and paired them ...the market actually went from 509,900 to 510,000. This is the problem , the closed sale told the story and he went back and used bad data to come up with his conclusion.

 

[DARREN GODFREY]

I don't want to get into a pizzing match with you, so I'll try to keep it positive: You seem like you are good at retrospective appraisals.

Appraisals are retrospective basically, when using the sales comparison approach...do you see a slot for future closed sales? No you will have listings ...they can be higher equal... How often during the crash did you see people purposely put their properties on the market lower due to trends , never. People don't want to part with their money....except when they can get it financed.

 

[DARREN GODFREY]

This is one of the reasons I have never been a fan of the MC form, this form really serves no purpose. You see increases in property because people actually have money in a hot market.. if the market is hot they will spend THEIR money when it comes down to it .

 

[residentialguy]

Appraisals are retrospective basically, when using the sales comparison approach

We Certify that we opine "Market Value" in our appraisals for sales and refis. So, what does it mean by "as of a specific date" in the definition of Market Value? Is that the date prior or equal to the comps, or the effective date of the appraisal, which is typically the inspection date of the subject after the comps have closed?

 

[residentialguy]

Appraisals are retrospective basically, when using the sales comparison approach...do you see a slot for future closed sales? No you will have listings ...they can be higher equal...

NO, they are NOT. They are as of the effective date, which is typically the inspection date. We verify pending sales as well as all the other market indicators, including, but not limited to active listings.