• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Adjustments

Status
Not open for further replies.

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
For all you regression model experts, what do you do when the regression model shows a -$2,433 for the age adjustment or a negative adjustment for walk-out basement or $9,498 for a fireplace in a $350,000 house?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
regression model shows a -$2,433 for the age adjustment
Sounds reasonable for annual loss... Make sure you have the units correct, and if you are using the things actually driving value. What is your R square value?
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
For all you regression model experts, what do you do when the regression model shows a -$2,433 for the age adjustment or a negative adjustment for walk-out basement or $9,498 for a fireplace in a $350,000 house?
Always manually run it through this to show support and that you actually have true knowledge on regression models

upload_2017-11-15_15-52-46.png
 
D

Deleted member 130081

Guest
I know, who would want a walk-out basement right? Definitely a negative adjustment for a walk-out. Sounds like your regression program works great and you now have the proof your lender client requires. Good job!
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
I know, who would want a walk-out basement right? Definitely a negative adjustment for a walk-out. Sounds like your regression program works great and you now have the proof your lender client requires. Good job!
That's right. I give a negative adjustment if it even has windows! :rof:

Good catch, FC. Numbers are like people; torture them enough and they'll tell you anything.
 
Last edited:
Joined
Jun 2, 2007
Professional Status
Certified General Appraiser
State
Florida
I know, who would want a walk-out basement right? Definitely a negative adjustment for a walk-out. Sounds like your regression program works great and you now have the proof your lender client requires. Good job!
If running a regression on $/SqFt then a larger square footage including the basement would result in a negative $/SqFt adjustment... just a thought.
 
Joined
Jun 2, 2007
Professional Status
Certified General Appraiser
State
Florida
For all you regression model experts, what do you do when the regression model shows a -$2,433 for the age adjustment or a negative adjustment for walk-out basement or $9,498 for a fireplace in a $350,000 house?
In multilinear regression the model should give you the intercept. I'm not sure how you entered the "age" or "basement" but your "value" will equal the subject property ("age" x -2,433) + (basement 0 or 1 x whatever your basement is) + (fireplace 0 or 1 x $9,498). But of course this is silly. Everyone knows that the fireplace coefficient is usually closer to $7,003.

Your post is a joke, right? You are complaining because it pains you to learn something new so you are throwing a tantrum? If I'm wrong, I apologize, but if your question is legit you need a lot more help with this than you'll get from a forum.

Either way, I would agree if you are trying to suggest that appraisers should not be running MLR without some years of training, preferably at a University.
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
If running a regression on $/SqFt then a larger square footage including the basement would result in a negative $/SqFt adjustment... just a thought.
sure...if it was the identical house with the identical buyer and sellers. Worth thinking about, too.
 

leasedfee

Member
Joined
Oct 14, 2007
Professional Status
Certified General Appraiser
State
Colorado
For all you regression model experts, what do you do when the regression model shows a -$2,433 for the age adjustment or a negative adjustment for walk-out basement or $9,498 for a fireplace in a $350,000 house?
It happens. Your regression's coefficients are not the same as an appraiser's adjustment in the elements of comparison. Remember there is a (usually large) constant (C) that absorbs a large amount of the information and we appraisers don't know how to relate "C" to real world attributes. It, C, is just a number that makes the best fit. (It isn't land/site value, but may incorporate some site value). What does a regression coefficient encompass? The contribution of the improvement characteristic being measured; its land; its superstructure; its soft costs/EI. Nobody knows!

If you force a regression model to not use C, that creates a whole new slew of problems -- don't go there.

Age is a decent proxy for condition, but not always. Is a 1950 gut-renovated house in 2010, the same as a 1960 house with ongoing renovations over the years? Is a 1950 gut-renovated house in 2010, the same as a 2010 YOC house? Subjective and squishy. Regression only computes "1950", "1960", "2010".
 
D

Deleted member 130081

Guest
If running a regression on $/SqFt then a larger square footage including the basement would result in a negative $/SqFt adjustment... just a thought.

And so this adds or reduces the credibility of the method as applied? Just asking.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks