Adjustment Software

[bishopsnet]

Hello. I got a revision asking me to explain my methodology for my adjustments, which I was told the GSEs are hitting on now. During my conversation with a QC rep, she told me some appraiser's are adding a page with some type of software that makes it easier. I am attaching a file. Can anyone tell me what this is?

 

[Trihard]

Hello. I got a revision asking me to explain my methodology for my adjustments, which I was told the GSEs are hitting on now. During my conversation with a QC rep, she told me some appraiser's are adding a page with some type of software that makes it easier. I am attaching a file. Can anyone tell me what this is?

Yes, those are **** adjustments.

 

[Non Sequitur]

That's Synapse:

Synapse by Spark

synapse.sparkforappraisers.com

 

[Terrel L. Shields]

I wonder who in the GSEs is getting the kickbacks from the adjustment software providers.

 

[Cob]

Hello. I got a revision asking me to explain my methodology for my adjustments, which I was told the GSEs are hitting on now. During my conversation with a QC rep, she told me some appraiser's are adding a page with some type of software that makes it easier. I am attaching a file. Can anyone tell me what this is?

This is the future of appraising residential properties, your client wants what bascially amounts to a self contained appraisal report, which is the way commercial appraisals are completed and not the way Residential Appraisal Reports are supposed to be completed, I can tell you what it is, it's nonsense and one of the many reasons I am only a part time appraiser and consider being an appraiser as almost a side gig now, as it has come to this and is ONLY going to get WORSE!

Self-Contained Appraisal

A Self-Contained Appraisal Report fully describes the data and analyses used in the assignment. All appropriate information is contained within the report and not referenced to the appraiser's files. A Self-Contained Appraisal Report contains information sufficient to identify the real estate involved in the appraisal, including the physical and economic characteristics relevant to the assignment. The Self-Contained Appraisal Report includes a description of the information analyzed, the appraisal procedures followed, and the reasoning that supports the analyses, opinions and conclusions.

Summary Appraisal Report/Appraisal Report

A Summary Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice (USPAP) for a Summary Appraisal Report. As such, it presents only summary discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses not included in the report is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated herein.

 

[Terrel L. Shields]

Actually few commercial appraisers I know would call their report "self-contained" - they are all summary reports. Not that those terms are relevant.

However, clearly from the days when we stated our adjustments, and called that a summary, the PTB want more. They want you to describe the "support" for your adjustments. Your judgment is no longer trusted. "Prove" the adjustment. Soon, residential reports will be longer than commercial ones.

 

[Cob]

Actually few commercial appraisers I know would call their report "self-contained" - they are all summary reports. Not that those terms are relevant.

However, clearly from the days when we stated our adjustments, and called that a summary, the PTB want more. They want you to describe the "support" for your adjustments. Your judgment is no longer trusted. "Prove" the adjustment. Soon, residential reports will be longer than commercial ones.

That is 100% correct and just mind boggling to me, as I am sure the fees will NOT change accordingly, I am sure Residential Appraisers have already seen all of the "adapt or die" colums and articles from the usual suspets of publications, I am NOT adapting, I have already planned accordingly for this shift, for those who stick it out, I wish you all the best of luck.

 

[Dublin ohio]

Soon, residential reports will be longer than commercial ones.

If they are going to accept what the OP posted. Seems to me a couple pages of software outputs and a paragraph of commentary would be all it takes.

 

[sputnam]

Hello. I got a revision asking me to explain my methodology for my adjustments, which I was told the GSEs are hitting on now. During my conversation with a QC rep, she told me some appraiser's are adding a page with some type of software that makes it easier. I am attaching a file. Can anyone tell me what this is?

To me, it just looks like a splashy way to summarize the support for the adjustments. There's nothing groundbreaking there except the way it looks.

 

[Tom D]

Just make a general comment on any adjustment approach and maybe 1 or 2 charts if you can make them. It's either matched pairs, sensitivity, depreciated cost, cost or regression. The hardest is GLA. Most small items are just cost depreciated, or market reaction to them. ex: bath adjustment based on cost new $15,000 minus any depreciation, and or location factors. There is a GLA excell chart on this blog that you can play with, looks good for the GLA. They want to know that you did more than look at the 1980 adjustments list.

Here is a overall general comment to have, beside some specifics ones.
The Appraising Residential Properties, 4th Edition, Appraisal Institute, "Other Quantitative Adjustment Techniques”, Page 344 further states: “…In instances where paired sales analysis is not conclusive, the appraiser may apply judgment to resolve the problem." The adjustments resulting from the appraiser's judgment is based on a study and understanding of historic or past buyer preferences. It further suggests that cost and depreciated cost data may be used with the appraiser arriving at the value contribution (not cost new) of certain features. The process of supporting the contribution of individual variables (features) is limited and often difficult to quantify, with adjustment deemed to be qualitatively supported unless otherwise addressed. All methods of supporting adjustments are usually limited by inherent uncertainties within the applications themselves.

Adjustments, in this report, are based on a combination of Paired Analysis with Sensitivity and/or Trend Analysis & on a study and understanding of historic or past buyer preferences. Support for adjustments may be based on multiple applications and rarely do two methods return identical results with a high degree of accuracy. While not always 'strongly' independently supported, collectively, the adjustments serve to narrow the adjusted value range of the comparables in support of the subject's 'most probable selling price' commensurate with the definition of Market Value set forth herein.