Corelogic - Price Distribution Of Comp Transactions

[William Little]

Maybe the market is declining hence comparable sales prices are mostly higher than the subject contract price.

 

[nachocheesefries]

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

That is exactly right...

 

[Deleted member 130081]

View attachment 32254

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

Well that's one opinion/conclusion.

Another might be that across the board, appraisers are submitting reports that adequately support their opinion of value, using the client preferred and recognized technique of presenting market evidence known as bracketing. The insinuation appearing to be made, and correct me if I am wrong, is that appraisers are hitting the sales contract price in some diabolical way. Prices are up almost everywhere and the majority of sales contracts fall within the probable range, so...I don't see what the big surprise is and why the cry of wolf. The data appears exactly as I would expect it to. If reports had 4 comps instead of 3, the percentage would likely be 50/50. A client would prefer to see 2 of the 3 be higher than the opinion, not the other way around, so...

 

[Joe Flacco]

Well that's one opinion/conclusion.

Another might be that across the board, appraisers are submitting reports that adequately support their opinion of value, using the client preferred and recognized technique of presenting market evidence known as bracketing. The insinuation appearing to be made, and correct me if I am wrong, is that appraisers are hitting the sales contract price in some diabolical way. Prices are up almost everywhere and the majority of sales contracts fall within the probable range, so...I don't see what the big surprise is and why the cry of wolf. The data appears exactly as I would expect it to. If reports had 4 comps instead of 3, the percentage would likely be 50/50. A client would prefer to see 2 of the 3 be higher than the opinion, not the other way around, so...

I don't know what that has to do with comparable selection. You are suggesting that the comps are being selected for reasons other than property characteristics.

I am just saying that the distribution chart is interesting. Raises some questions for sure.

 

[timd354]

That is exactly right...

You guys really need to take a look at the lower left of the chart posted in post 1 of this thread which discloses that the data utilized are from FNC's National Collateral Database which means that these are not all CoreLogic appraisals

 

[Deleted member 130081]

I don't know what that has to do with comparable selection. You are suggesting that the comps are being selected for reasons other than property characteristics.

I am just saying that the distribution chart is interesting. Raises some questions for sure.

I am not just suggesting comps are selected for reasons other than property characteristics, I am saying it directly. USPAP does not say provide sales data with similar property characteristics, it says provide relevant market evidence. Seems to me the price would be relevant to provide support for the opinion, no?

 

[Joe Flacco]

I am not just suggesting comps are selected for reasons other than property characteristics, I am saying it directly. USPAP does not say provide sales data with similar property characteristics, it says provide relevant market evidence. Seems to me the price would be relevant to provide support for the opinion, no?

So then you agree that the data seems to suggest that comparables are being selected by price.

 

[TJSum]

IMO this statistic has far less meaning than the article and our discussion is trying to make it be. It just sounds like some useless study result by a company trying to promote something, such as their AVM products. Far more important, are the appraisers picking the most similar comparables to use on their reports or not? This price study does not prove anything towards that vital question in any way. Just another example of the industry trying to turn the art of appraisal into a pure science which it is not. Just because one can crunch all kinds of numbers and turn them into a "study" doesn't mean all the different results have meaning, some results may hold great meaning, and than others not so much, this thread is discussing a result from the not so much category.

 

[nachocheesefries]

Appraisers are more frequently ridiculed for NOT supporting their final opinion of final. Bracket this...bracket that...blah blah blah.

It is not difficult for me to see that one could unwittingly be inclined to utilized higher priced comps instead of making upward adjustments on comps with lower sales prices and inferior property components when compared to the subject. Heaven for bid every comp be 'plussed up'

I do a lot of general purpose appraisals for non lender clients. They are my favorite because I am not restricted by some arbitrary 12 month comp selection or bracketing, etc....I use the comps the I FEEL are the best indicators of value for the subject.