Ever been asked for the % of weight for each comp?

[DJBanas]

N.O. Guy: I think you need to "murky" it up a little. Your statement is too clear for the monkeys.

 

[Terrel L. Shields]

Yes, if I weight more than one, I can and oft do state the percentage I "weight" each. If equally weighted, its 33.3%. If I weight 2 and give no weight to the other, then it could be 10/90/0 to 50/50/0 but it is just a matter of figuring it out

say my comps are 110,000, 94,000, and 104,000. I detemine 2 is not a good comp, I weight only 1 and 3. I determine 3 is the clear superior comp, and I report $105,000 as the value. Thus I have given it 5/6 the of the weight.

 

[Randolph Kinney]

This is what I gave them. It is 2 paragraphs that repeat each other slightly because I had to repond twice, the second time with percentages.

UNDERWRITER REQUEST: My reconciliation was based on the best matched pairs to the subject and not an averaging of values. The sales that were given the most weight were 1, 2 and 3. Comparable #3 is on Garden Rd. on a much larger lot and was not as similar in construction style as comparable #1. Comparable #4 was added to bracket the subject's GLA and was not given very much weight in the reconciliation. The subject is most similar to comparable #1 vs. the other sales and listings.

Comparable weight was not exactly calculated for my reconciliation of value since comparable adjustments cannot be made for every exact difference between the subject and the comparable sales and listings. My approx. estimated weight would be comp #1 75%, comp #2 10%, comp #3 10%, and comp #4 5%. Appraisal is not an exact science and value reconciliation is only based partially on mathematical adjustments made to comparables, and the appraisers opinion based on experience in the specific market areas.

Or, you could have said: Comp 1 was given the most weight in the reconciliation process due to its similarity to the subject while comps 2, 3, and 4 were given less weight.

 

[New Orleans Guy]

$1 says they come back with something about this statement, something like "why did you put this comp in to bracket the GLA? does that mean the other comps, which did not bracket the GLA, were not good choices?"

I know. If they ask that I will say that underwriters and AMC guidelines required me to brack the GLA. I will also state as I have done in the past that although I do not think that these requirements enhance the quality of the report they were added to satisfy my clients requirements and were not given any significant weight in my reconciliation. I say the same thing about the 1004MC all the time.

 

[RSW]

Coffee in hand...

I personally would not be comfortable giving 100% to one comp, unless it was a very unique situation. If I have 2 or 3 other sales, they are comps because they are comparable in some way, which would imply that at least some minimal reliance was made on them...

I do not specify a numerical % of weight for the comps. I say I weighted comp X mosre, or relied on comp 1 and 2 the most, Or comps 2 and 3 wer the most reliable value indicators because ___________(explanation)

If we put a precise % amount weight on comps, it seems mathmatically superior, but actually could end up being another trap ...why did the appraiser place 70% weight on comp one and 30% on comp two, they could ask. As you said, some clients belong on the do not use list....

I agree. One comp does not make a market. Although, it could be hard to find comps. in the type of market we have been seeing in the last 5 years.

 

[Mile High Trout]

Related thread on the matter from last week or so

http://appraisersforum.com/showpost.php?p=2278225&postcount=45
http://appraisersforum.com/showpost.php?p=2279447&postcount=77

Click on top link there for whole thread.

Weighting? Why?

Is 6 comps sooooo many comps that weighting is even necessary?