Corelogic - Price Distribution Of Comp Transactions

[Joe Flacco]

http://www.mortgagenewsdaily.com/05302017_appraisals.asp

A recent review of three-quarter million purchase-loan appraisals completed in 2015 and 2016 showed 69.1 percent of the comps used in those appraisals were priced higher than the subject property and 30.9 percent were priced below it.



I thought this was interesting. The data seems to suggest that comparables are being selected by price.

 

[ucbruin]

View attachment 32254

http://www.mortgagenewsdaily.com/05302017_appraisals.asp

A recent review of three-quarter million purchase-loan appraisals completed in 2015 and 2016 showed 69.1 percent of the comps used in those appraisals were priced higher than the subject property and 30.9 percent were priced below it.



I thought this was interesting. The data seems to suggest that comparables are being selected by price.

Duh.....

 

[Evincere]

View attachment 32254

http://www.mortgagenewsdaily.com/05302017_appraisals.asp



I thought this was interesting. The data seems to suggest that comparables are being selected by price.

Isn't this how properties are listed for sale. By Realtors doing CMA based upon past sales? Or is this just some new approach Corelogic is taking to push its AVM machines.

 

[Joe Flacco]

Isn't this how properties are listed for sale. By Realtors doing CMA based upon past sales? Or is this just some new approach Corelogic is taking to push its AVM machines.

I don't know. You would think that comp selection based on property characteristics would be pretty close to 50/50 with a 750k report sample size.

"Undoubtedly, as the industry continues to embrace the opportunities that new data and technology have presented, traditional appraisal will likely incorporate big data techniques to position itself as a superior, unique alternative to automated valuation models."

It sounds like they are promoting big data but concede that traditional appraisal > AVM.

 

[J Grant]

Very odd percentages...then again what did that company think the trend of AMC selection of fastest and cheapest would lead to?

 

[Joe Flacco]

Very odd percentages...then again what did that company think the trend of AMC selection of fastest and cheapest would lead to?

That is a pretty good point. Assuming that the 750k report sample is all Corelogic appraisals, it is only representative of their panel.

 

[J Grant]

I wonder if it is all CL appraisals, or from various sources...either way the AMC involvement of ordering a large share of appraisals would have to take responsibility for results

 

[Evincere]

It sounds like they are promoting big data but concede that traditional appraisal > AVM.

"Undoubtedly, as the industry continues to embrace the opportunities that new data and technology have presented, traditional appraisal will likely incorporate big data techniques to position itself as a superior, unique alternative to automated valuation models."

Ya think?

That's really some savvy lingo. At one time, AVMS's were referred to as unique "alternative" products as they were cheaper and faster and predicted to become more accurate - to me they are suggesting a turn around - that an Appraisal will become the unique product. When I think of unique I think more in terms as noun

the final, utmost, or furthest boundary or point as to extent, amount, continuance, procedure, etc.:

But I suspect they are thinking differently about the implications of the meaning of unique;
which is to restrict, confine or keep within limits by establishing limits:

I think, maybe I think too much about some things, but for sure I know what I think about Corelogic and their agenda.

 

[Riick]

WHY is anyone surprised, people moan about U/W requiring you
to ***BRACKET*** the Subject in each and every aspect.
So..... Why should Sale Price be different?
If that ratio were 2 lower priced to 1 higher priced, would the world, or CL care?

 

[timd354]

Very odd percentages...then again what did that company think the trend of AMC selection of fastest and cheapest would lead to?

So you have data that show that the comparable sale price distribution is different for AMC appraisals than it is for non-AMC appraisals?

FYI, CoreLogic now owns FNC and the guy who authored the Blog article with this data is someone who was with FNC before they were purchased by CoreLogic - look at the bottom of the graph in the OP....you will see that the database used is the FNC National Collateral Database, which is database that includes appraisal data provided by numerous lenders who use the FNC Collateral Management System and other FNC tools. Thus, the data is undoubtedly from a mix of AMC and non-AMC loans