Across The Board Time Adjustments?

[residentialguy]

You see ...

• the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Where do we derive the normal consideration from? A made up number or sales of comps? It's history...

The market value of the subject must reflect normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. That's why we adjust the comps when there are seller paid concessions so that the comp reflects what the sale price would be if the seller didn't need to shell money out to the buyer's for closing cost, or by abnormal financing, such as a C/D.

 

[DARREN GODFREY]

maybe...or that's it may be an increasing market where all sales prior to the effective date need to be adjusted.

If all sales need to be adjusted then why have sales at all , can't we just make up a number ...cmon man...stop the nonsense.

 

[residentialguy]

What is below the value and who sets the value?

The value is derived from the market. The appraiser opines the value that is supported by the market indicators.

 

[residentialguy]

If all sales need to be adjusted then why have sales at all , can't we just make up a number ...cmon man...stop the nonsense.

So, if all your comps had pools or porches and the subject didn't. You wouldn't adjust? LOL
However, no one is suggesting to "make up a number".

 

[residentialguy]

e butts and opinions so where is the comp that supports this...plenty of comps

Market trends, pending sales, actives, etc.

 

[DARREN GODFREY]

maybe...or that's it may be an increasing market where all sales prior to the effective date need to be adjusted.

If all sales need to be adjusted then why have sales at all , can't we just make up a number ...cmon man...stop the nonsense.

The value is derived from the market. The appraiser opines the value that is supported by the market indicators.

So if we are developing the sale from the market we are looking back at guess what #1 sales comparison approach...notice that sales is a keyword. It isn't the market trend approach. Notice also that they have imposed a limit on how far we can go back...to try to make it real time. So now you are saying ignore that cause the market is increasing and that is enough to throw out your sales data...the rabbit hole got deep.

 

[DARREN GODFREY]

Market trends, pending sales, actives, etc.

SALES...closed sale ...SALES comparison approach...is it starting to make sense no ...so if my sales are say <<< that is true and considered...but if I am speculating <<< then it's not SALES comparison.

 

[residentialguy]

If all sales need to be adjusted then why have sales at all , can't we just make up a number ...cmon man...stop the nonsense.

So if we are developing the sale from the market we are looking back at guess what #1 sales comparison approach...notice that sales is a keyword. It isn't the market trend approach. Notice also that they have imposed a limit on how far we can go back...to try to make it real time. So now you are saying ignore that cause the market is increasing and that is enough to throw out your sales data...the rabbit hole got deep.

It's really pretty clear. There is a line item adjustment...so important that it is the 3rd adjustment line.

If in the analysis and completion of the sales comparison approach the appraiser determines that time adjustments are required, the adjustments may be either positive or negative. The adjustments, however, must reflect the difference in market conditions between the date of sale of the comparable and the effective date of appraisal for the subject property.

 

[DARREN GODFREY]

So, if all your comps had pools or porches and the subject didn't. You wouldn't adjust? LOL
However, no one is suggesting to "make up a number".

I can actually go by closed SALES and get those numbers. Now if I said it was gonna be a cold summer and the pools are gonna be worth more then WTF am I doing?

 

[residentialguy]

SALES...closed sale ...SALES comparison approach...is it starting to make sense no ...so if my sales are say <<< that is true and considered...but if I am speculating <<< then it's not SALES comparison.

Yes, that clearly takes into consideration the difference in market conditions between the date of sale of the comparable and the effective date of appraisal for the subject property - 3rd line item. Maybe you've missed it.
Market value....most probable price on the effective date.