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Adjustment Software

Some of the flaws I see in these adjustment software programs is based on the lack of good data in a MLS. For instance, there is no way to disseminate the contributory value of workshops or guest quarters. There is no way to support the adjustment for a 1200 sf workshop compared to a 4800 sf workshop or 2400, 3600 etc. MLS data usually just says "workshop." Guest quarters can be lumped into living area in MLS listing. MLS listings may have the ADU size, but many times they do not. A 600 sf, 1200 sf, 1800 sf guest quarters all have different contributory values, but we have to dissect the MLS listing to see the size of the ADUs then dissect whether they were included in living area. Rural appraisals have so many different improvements we have to use the old appraisal science of figuring contributory value.
Very true, welcome to my world. Workshops, pole barns and quarters can be a nightmare to confirm. I'm still waiting for one of the paired sales pukes to tell me what adjustment to give a monstrous detached building that is part garage, part quarters, part workshop, part pool room and part pool house. A side note, the quarters have a stairway to a second level which only has an AC unit for heat/air and toilet with no sink.
 
Very true, welcome to my world. Workshops, pole barns and quarters can be a nightmare to confirm. I'm still waiting for one of the paired sales pukes to tell me what adjustment to give a monstrous detached building that is part garage, part quarters, part workshop, part pool room and part pool house. A side note, the quarters have a stairway to a second level which only has an AC unit for heat/air and toilet with no sink.
The same adjustment you gave this 20 years ago or so…
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The same adjustment you gave this 20 years ago or so…
View attachment 95325
As a comparable, I'd have to use depreciated cost......in fact probably more than fully depreciated cost, wrecker, dumpster and bulldozer fees. Trouses can be so much fun, you meet some interesting characters who own them. That would be an easy assignment for me to decline since it's over 4 units. I would recommend it be assigned a certified general with an eager trainee. :)
 
She's sharp, very sharp. Had a very long conversation with her, she's impressive and passionate about the software. Where I disagree, and strongly disagree, is the idea that if it can be measured it should be accounted for with an adjustment or an explanation as to why the adjustment is 0. And what I mean by "if it can be measured", think nearly every single feature UAD 2.0 wants reported; High speed internet, front door elevation which ties into flood zone, etc. If there are differences there will be questions. That's where we are headed with UAD 2.0 and baking photo recognition, scan to sketch software, and adjustment software into the process.
Agree with you 100%. Statistical results reported without accompanying variability or confidence statistics. Rubbish. It's meaningless 'statistical' analysis. Someone here said they could just as credible analysis by skimming a table of MLS comps (I'm paraphrasing). Absolutely right. Can't wait for this to be tested in the courtroom. Attorneys I work with would utterly humiliate the vast majority of appraisers who are slapping these program results at the end of their report and calling it a day. And the users are going to get **** reports, loose a bunch of money, blame the appraisers.......
 
I just appraised a house in a small town with no sales in the past two years. I had to expand the MLS to ten miles to other small towns to find three sales similar in age and GLA. Then when I got to the property, the house MLS listing included the garage in the GLA. It was actually 880 sf. None of the sales within ten miles were that small. I had to go 20 miles to find one that was actually smaller. Adjustment software would be absolutely ridiculous on this assignment. Four sales within 20 miles in one year.
 
Four sales within 20 miles in one year.
I run into that frequently in NE Oklahoma - Craig, Adair, Ottawa, and Rogers Counties are very sparsely populated and Delaware County is concentrated around a lake. The economy of the lakeside towns if a lot different from the small towns in the rest of the county. One town is over 50% rentals.

SW Missouri is as bad or worse. And I was watching a vid about some small towns in SE Kansas - one the average home price was less than $40,000. The population was less than half their peak in the 1920s.
 
If the GSEs really cared about appraisal quality, they would send a memo to the banks and AMCs and lenders that a recommended turn time would be to change the 48 hours now in place to 3 days minimum. Teh turn time has shrunk to the point where it impedes work quality. And makes it more difficult to verify things in time, do deeper research, including developing time adjustments.

The AMCs, from what is posted, can delay awarding while they fee search, so give THEM a deadline to assign an order within 24 hours.

As for appraises, the tight deadline also throws off the ability to take more work or schedule appointments, which overall leads to less productivity and is inefficient.
 
e AMCs, from what is posted, can delay awarding while they fee search,
A bank appraiser I know whose department also assigns vendor appraisers and AMCs when necessary, told me once that AMCs will lie to them about getting someone on the job quickly and as a result, they often get the report back days after the AMC promised. And you can bet that is because the AMC was fee hunting for some time prior to assigning the work. And they were fee hunting so they could keep the biggest amount of money possible.
 
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