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EA For Retrospective Market Analysis?

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ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
I'm thinking that the market analysis section of a retrospective residential appraisal would not require an EA because the data is equally as available in the present as it would have been on the retrospective effective date in 1999.

The memory of market participants might be hazy, but public records and MLS in this neighborhood is readily available for the retro date.

Just wondering how others feel about this.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
I'm thinking that the market analysis section of a retrospective residential appraisal would not require an EA because the data is equally as available in the present as it would have been on the retrospective effective date in 1999.

The memory of market participants might be hazy, but public records and MLS in this neighborhood is readily available for the retro date.

Just wondering how others feel about this.


The total report will be based upon EAs not just specific sections. What EAs have you made thus far?
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
EA that condition on the retro data was similar to condition on the date of viewing.

Maybe an EA concerning the composition of the neighborhood regarding the relatively equitable mix of residential and commercial properties, although most properties should have been improved on retro date of 1999 based upon the typical date of construction is prior to the retro date.

None others than I can think of.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
EA that condition on the retro data was similar to condition on the date of viewing.

Maybe an EA concerning the composition of the neighborhood regarding the relatively equitable mix of residential and commercial properties, although most properties should have been improved on retro date of 1999 based upon the typical date of construction is prior to the retro date.

None others than I can think of.


If you have EA the condition of your subject .. that effects your sales comparison approach doesnt it?
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
I will address the condition-related EA in the SCA and refer the reader to the "condition" section.

also i might need an ea concerning sales concessions because none of the listing agents are available by phone. The L/S price is relatively constant and I think I can base my assumption concerning the absence of concessions on that analysis.
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
...Also assumptions--probabably ordinary rather than extraordinary because I would apply this rationale for all assignments with retro effective dates--that comparables that closed sale after the retro effective date were under contract on the effective date as per SMT-3.
 
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PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
...Also assumptions--probabably ordinary rather than extraordinary because I would apply this rationale for all assignments with retro effective dates--that comparables that closed sale after the retro effective date were under contract on the effective date as per SMT-3.


In doing a retrospective report I would caution you about using sales after the effective date of your report. While sometimes it is necessary, I have seen these sales be thrown out of court because they were not available as of the "effective date" were the appraisal to have been completed on that date. Just a word of caution.
And I think it would be an extraordinary assumption if you dont have MLS sheets showing the exact date of contract.
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Prop: I understand what you're saying and a proverbial fly on the courtroom wall would have a great perspective of the argument whether or not to include post-effective dates. I have tried my best to interpret SMT-3, which IMO gives carte blanche to post-effective dates in order to confirm (or to deny, by implication) trends.

In my current assignments--4 properties each with a current and a retro date--I experienced the analytical power inherent in using comps after as well as before the effective date as a well-neigh perflect application of matched pairs analysis that isn't afforded in the analysis of an assignment with a current date--almost to the extent that comps after as well as before the retro effective date SHOULD BE REQUIRED rather than tolerated as an exception. (IMHO)
 
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