Across The Board Time Adjustments?

[DARREN GODFREY]

Ok , I am engaged in a review appraisal and 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.

 

[Mike Kennedy]

Yes it should.

 

[DARREN GODFREY]

Yes it should.

Yeah, It seems he is hitting a number. I agree that it is an increasing market , however the sales should tell the story.
The OA used like 10 paragraphs to defend this adjustment...I don't personally like challenging another appraisers adjustments especially when I can see myself coming up with the same bottom line number , but 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.

 

[DARREN GODFREY]

Before I develop my own opinion value does anyone have any suggested reading on date of sale/ time adjustments

 

[Michigan CG]

Historically prices are flat this time of year and sometimes declining. Ten paragraphs of explanation for a "time adjustment" (market conditions adjustment) seems excessive. He ain't selling used cars.

 

[hastalavista]

Ok , I am engaged in a review appraisal and 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'd say you are incorrect.

I can think of no other adjustment that is so easily supported and would warrant application "across the board" than a market condition adjustment.

Did the report fail to support the adjustment or are you questioning if such an adjustment can be applied to all the closed sales in the grid?

 

[ucbruin]

Ten paragraphs of explanation for a "time adjustment" (market conditions adjustment) seems excessive. He ain't selling used cars.

You're a funny guy!!!!!

 

[NachoPerito]

It is not predicting the future if the date of value is today....

 

[DARREN GODFREY]

It is not predicting the future if the date of value is today....

Ok, well we are looking at the past to determine a value for today...is that not correct.

 

[DARREN GODFREY]

You're a funny guy!!!!!

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.