And here we go with Revisions requested on Time Adjustments

[J Grant]

Imo, we should be doing these kinds of searches for ourselves, not just for the client. They help us understand our market. If we do not understand it, how can we appraise it? How can we decide whether to make a market condition adjustment or not, and for how much ( or make two market conditions adjustment if the market changes course within the past year or contract date of a comp )

IF we understand the market, we understand our choices - we can not always be 100% "right," But our choices should have credible support- and when they do , it is easy to explain.

 

[OG80]

Nothing has changed wrt Feb 4th except they want to see support for adjustments when a market condition adjustment is made or why it was not made -and support can be shown as an illustration ( chart or graph but does not have to be, showing matched pairs for sensitivity analysis /extraction- and regardless of an illustration, we should always provide some narrative commentary anyway, for our own sake, not just for the client. )
The commentary can be brief, a few sentences or a paragraph, it just needs to sum up and communicate what you did and why/any result of analysis you made)

I attended a webinar for Feb 4th and they said (or perhaps that what I thought they said) that you had to define the Broader Market and go out and get at least 100 comparables for it against the 1004MC and then if the market was declining or increasing (the Broader Mkt - because the 1004MC was not being used anymore) you had to make adjustments on each comp that was applicable. (it was DataMaster). So, how do I explain that I used the DM program to make these adjustments? I explain what the adjustments are (in % and $ figure).

 

[J Grant]

I attended a webinar for Feb 4th and they said (or perhaps that what I thought they said) that you had to define the Broader Market and go out and get at least 100 comparables for it against the 1004MC and then if the market was declining or increasing (the Broader Mkt - because the 1004MC was not being used anymore) you had to make adjustments on each comp that was applicable. (it was DataMaster). So, how do I explain that I used the DM program to make these adjustments? I explain what the adjustments are (in % and $ figure).

Who are "they"? Trainers from a software company?

D Wiley, who posts here from Freddies says neither Fannie or freddie requires this kind of individual adjustment on each comp. Data Master sells software. They re not appraisers or users of appraisers.

If you do not understand a system, please do not use it . USPAP has a section on AVM and similar that says (paraphrasing) an appraiser should understand a statical or other program used and be able to recreate a search. Stick to searches you can control and understand ( branch out later if you want ). MLS has statistics training videos and searches and geneates charts or graphs. most of us have MLS. I am takign an oline webinar from my MLS becasue my skills are crude but at least I understand what I do - I choose or exclude certain sales as comps for a search.

You are the appraiser; you know how much and what kind of data is needed to show a trend, and sometimes, a larger search and a smaller search are both done for compassion and analysis.

 

[Mejappz]

Which webinar is this? If it’s from Liss and True Footage, or Dingemn and Class Valuation (Datamaster), I would disregard everything they say.

 

[Sadie]

Just turned in my 1st report using the Time Adjustments requested. And here is the very first revision request. I knew that when they differed, that

1004MC data indicates Declining price trend (and positive time adjustments are applied in the sales grid – please confirm / revisit if necessary or clarify (and indicate how the adjustments were determined / applied)

Here are my "Market Conditions" Explanation of what I searched for:
Broad Market Conditions
Search Criteria Description: To the West zzz, to the East zzz to the South. Includes Detached units with a lot size of up to 10,000 sq ft and a Finished Area Above Grade between 1788 and 2683 sq. ft. Additional factors include between 3-4 bedrooms and 2 baths. Searched dates are 800 days prior.

Date of sale search was extended to include sales up to 800 days. Adjustments reflect changes in the competing market median sale price per month within the board market. The following specific adjustments were applied: Comp #1: A 1.61% change from sale date, rounded to $6,487. Comp #2: A 2.57% change from sale date, rounded to $13,260. Comp #3: A 5.91% change from sale date, rounded to $26,419. Comp #4: A 12.98% change from sale date, rounded to $46,719. (DATAMASTER)

Here is the 1004C

View attachment 96997

Anybody have a good response to this?

Typically, its for the market in general, not your specific comps. Because there are very few of us who work in a market that will provide credible results for a MC adjustment if we only look at comps. The MC form is just for comparable properties, and maybe (?) support your general market trends.

 

[Sadie]

I was taught that FM doesn't want us to go over 1 mile.

Are you referring to Fannie? Freddie? If so neither one of them care how far out you go or how far back, as long as you explain why.

 

[Fernando]

Are you referring to Fannie? Freddie? If so neither one of them care how far out you go or how far back, as long as you explain why.

I never heard of the 1 miles constraint?