Across The Board Time Adjustments?

[residentialguy]

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?

Report the market reaction as of the effective date. Simple as that.

 

[DARREN GODFREY]

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

That is great , but ...aren't closed sale market data. Probably the most solid market data. We specifically put those in there , they usually set the standard for adjustments. So if you are basing it on stats ...wouldn't those sale go up as time went on. SALES he made an adjustment based on speculation from all periods of time . It wasn't just one old sale ...it was all of them .

 

[DARREN GODFREY]

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

That is great , but ...aren't closed sale market data. Probably the most solid market data. We specifically put those in there , they usually set the standard for adjustments. So if you are basing it on stats ...wouldn't those sale go up as time went on. SALES he made an adjustment based on speculation from all periods of time . It wasn't just one old sale ...it was all of them .

Report the market reaction as of the effective date. Simple as that.

So , when your MC data which is on the general side ...doesn't agree with the specific data. You all of a sudden go with the general data. What dimension does that work in?

 

[residentialguy]

That is great , but ...aren't closed sale market data.

We need to consider all market data. The SCA is not just about closed sales. Market forces are dynamic, and the appraiser's opinions and conclusions refer to a specific point in time. In order to opine value for that specific time, we need to adjust for anything that might have changed from the comp sale date.

 

[residentialguy]

QUESTION FOR YOU
What would you do if all your actives and pending sales suddenly dropped 10% from your comps? All indicators show the market as of the effective date where much lower than your closed comps. Since you only opine value from your closed sales...that would make you one of those appraisers that inflate value!

 

[residentialguy]

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. 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.

Let's just see what your REQUIREMENTS say:
https://www.fanniemae.com/content/guide/selling/b4/1.3/07.html

B4-1.3-07: Sales Comparison Approach Section of the Appraisal Report
The sales comparison approach to value is an analysis of comparable sales, contract sales, and listings of properties that are the most comparable to the subject property.

The appraiser’s analysis of a property must take into consideration all factors that have an effect on value. The appraiser must analyze all closed sales, contract sales, and offerings or listings of properties that are the most comparable to the subject property in order to identify any significant differences or elements of comparison that could affect his or her opinion of value for the subject property as of the effective date of the appraisal report. This is particularly important in changing (increasing or declining values) markets. Analyzing closed sales, contract sales, and offerings or listings is an important analysis in any market and will result in more accurate reporting on market conditions, including trends that indicate that sale prices for contract sales and asking prices for recent offerings or listings have changed.

You were saying something about the SCA being just about closed sales????

End of Debate. Now you know... and now you have 2 choices:

1. realize you're wrong and become a better appraiser by reporting the actual Market Value as of the effective date by taking into consideration all factors that have an effect on value or
2. become worse by knowingly misleading your clients with your errors of omission, refusing to follow your requirements.

 

[Eli]

I have read this thread and I am still confused on whether the appraiser used the same dollar adjustment on each comparable regardless of sale date or how they developed their adjustment and what the adjustment was. I am thinking the adjustment is like $10,000 on each comparable for market conditions. I have to say I study listings. I am also of the opinion that listings are very good at indicating what a property is not worth.

Really good thread but missing info on the actual adjustment and how it was derived. I am still lost.

 

[BRCJR]

Actually I examined this and posted that he based his adjustments on a MC form...so maybe you should both read that. Anyways, thanks for all the help guys. As usual when I come to this site I will get one answer that actually points in a direction for me to go to make sense , then I get post of dirty pointing fingers that assume that I haven't done any research.
Let me say generally by the time I choose to expose myself to this site it is after a bunch of fact checking and that flat out pisses me off that people who don't know me will suggest that I have been appraising for 12 years and I don't know anything. It's called a lack of respect and although you side with who ever , you did not read my post where I explained how he came to support his judgement .. so in essence I have done a couple of hours of research and you didn't read all of my quotes and somehow I am supposed to be cool with that ....just peachy.

I have not posted a reply to your question.....but will state you are getting good advice and some good follow up questions.

 

[ucbruin]

Ok, well whenever someone is using huge words for a simple idea...you're about to be bamboozled. So he based his reasoning on this adjustment on the MC addendum. Further investigation revealed a foreclosed property in the first half of the 6 months of the year that sold at 50k less than all other properties. 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 ....

The good thing is , I don't have to look for comps . He did a great job on that . The bad thing is now I need to say he inflated the value without really saying it.

Good morning Darren,

I apologize to you if you believe I was poking fun of YOUR post.
I wasn't.....
I was poking fun at someone else's post!!!!!!

 

[Carlos Danger]

Darren, not a lot of experienced appraisers are agreeing with you here. Keep in mind the person you are reviewing may be capable of destroying your review.
You really seem like you want to do the job right. Change the name on your account to something other than your real name and open your mind to some of these suggestions.