formula for time adjustments

[Bill_FL]

Thats an easy one. There is no such thing as a time adjustment, as time has no impact on value.

 

[Joyce Potts]

These Potts people are amazing.

It's a market condition' adjustment, not a 'time' adjustment.

 

[Dennis J. Black ASA IFAS]

Database method

Steven,

How about (y/x) - 1

I find it is a little easier in excel.

 

[Webbed Feet]

I have misplaced my file that had my formula for time adjustments. Can someone help by providing a formula/method for making time adjustments with the following data:
house A sells on 09/01/06 for $450,000
house B sells on 02/01/07 for $410,000

Thanks for your help!

Mr. Watson,

Your question asked that way is completely bogus.. A time adjustment cannot be derived or supported that way from sales of two different properties like that. .. Now if you had House "A" selling on 09/06 and then House "A" selling again with nothing done to it to improve it and no changes to it in anyway on 02/07.. THEN you might be able to claim an indicator of time.

Beyond that, the question and any answer to it are both bogus.

 

[Webbed Feet]

Thats an easy one. There is no such thing as a time adjustment, as time has no impact on value.

Mr. Potts,

Oh REALLY? .. Ok, wait another thirty years and then go out and try and score with a twenty something great looking chic and tell her you have an empty bank account....

 

[Couch Potato]

Mr. Watson,

Your question asked that way is completely bogus.. A time adjustment cannot be derived or supported that way from sales of two different properties like that. .. Now if you had House "A" selling on 09/06 and then House "A" selling again with nothing done to it to improve it and no changes to it in anyway on 02/07.. THEN you might be able to claim an indicator of time.

Beyond that, the question and any answer to it are both bogus.

One reason it is bogus is there is nothing linear about recent declines (at least not in this area.) If those houses were here in Osceola county, likely 100% of that decline occurred in January of 2007. Paired sales are fine for many things, but a percentage adjustment per month for changing market conditions over time is not one of them IMHO.

 

[Joyce Potts]

One reason it is bogus is there is nothing linear about recent declines (at least not in this area.) If those houses were here in Osceola county, likely 100% of that decline occurred in January of 2007. Paired sales are fine for many things, but a percentage adjustment per month for changing market conditions over time is not one of them IMHO.

I never suggested pairing the sales for a per week/month decline rate.

My problem with any formula for market condition is the inherent straight line that suggests it declined at the same rate over so many days, weeks or months, because that's not necessarily true.

It's not a perfect method, but I come across data all the time suggesting declining trends that I feel are often overlooked by many appraisers. For me, pairing them provides better defensible support than coming up with straight line formula. Albeit, there is some cross over grey area there.

 

[Otis Key]

I don't know if it will help, but I can give you the forumula for all adjustments:
DY/DX

Mr. Potts,

Oh REALLY? .. Ok, wait another thirty years and then go out and try and score with a twenty something great looking chic and tell her you have an empty bank account....

You two are in classic mode today - Love it!

 

[Mike Garrett RAA]

Two sales don't make a market.

My exact thoughts.

Personally, I think as long as the national media is telling everyone in America that real estate is in the toilet, lets use -1% per month until they shut up.

 

[Fred]

Steve,
How did you publish the symbol for change in your post?

The same way I publish Pi, Sigma and Omega. PSW


I am confident you can figure it out, but just in case, this link may speed up the process.
http://www.geocities.com/chp295/jeopardy.mid