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How long did it take before you felt comfortable with your adjustments?

How long before you felt comfortable with your adjustments?

  • Right away (yeah right)

    Votes: 10 12.3%
  • 1-2 years

    Votes: 25 30.9%
  • 3-4 years

    Votes: 24 29.6%
  • 5 years

    Votes: 3 3.7%
  • 5 years +

    Votes: 19 23.5%

  • Total voters
    81
  • Poll closed .
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Pdexter

Thread Starter
Sophomore Member
Joined
Oct 23, 2007
Professional Status
Appraiser Trainee
State
Oregon
Just curious... I've spoken with the appraisers I work with, but I'm interested to know how the rest of you feel.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Well, considering you are supposed to support your adjustments with paired sales, I would say about one day.
 

Pdexter

Thread Starter
Sophomore Member
Joined
Oct 23, 2007
Professional Status
Appraiser Trainee
State
Oregon
Do you do a matched pair analysis for every single comp? Every time?
 

Pdexter

Thread Starter
Sophomore Member
Joined
Oct 23, 2007
Professional Status
Appraiser Trainee
State
Oregon
What I mean to say is, most long-time appraisers seem to have internalized many adustments based on long-term market trends. How long before you "knew" these numbers?
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
What I mean to say is, most long-time appraisers seem to have internalized many adustments based on long-term market trends. How long before you "knew" these numbers?

Those numbers are never the same in any market. There is no such thing as a list. Did you ever wonder why lenders ask for comparables sales with similar improvements (pool, barns, workshops, etc)? Sometimes I adjust $5,000 for a pool, sometimes I adjust $50,000, etc. It depends on the market and the actual value of that improvement in that market. Heck, an extra bay in the garage can be $1,000 in one neighborhood and $10,000 in another.

Any appraiser that tells you that there is a certain number for any adjustment or you always adjust $20 per foot for living area is not a very intelligent appraiser or a credit to our profession.
 

Pdexter

Thread Starter
Sophomore Member
Joined
Oct 23, 2007
Professional Status
Appraiser Trainee
State
Oregon
I'm not talking about using the same number for the adjustment in any market. I'm talking about knowing "your" market well enough that you can make the adjustent based on countless previous observations... Or does that exist? How long before you knew your market well enough to adjust for a Garage off the cuff etc?
 

Pdexter

Thread Starter
Sophomore Member
Joined
Oct 23, 2007
Professional Status
Appraiser Trainee
State
Oregon
By "your market" I mean the property you are appraising right now. You know that you have seen it before... That kind of place...
 

Tom Barclay

Senior Member
Joined
Apr 7, 2002
Professional Status
Retired Appraiser
State
Oregon
I'm not talking about using the same number for the adjustment in any market. I'm talking about knowing "your" market well enough that you can make the adjustent based on countless previous observations... Or does that exist? How long before you knew your market well enough to adjust for a Garage off the cuff etc?

It never "exists". The market is fluid, as the appraiser should always be.
 

GCJim

Senior Member
Joined
Dec 11, 2007
Professional Status
Certified General Appraiser
State
New Jersey
To answer your question, I probably NEVER feel 100% 'comfortable' with every adjustment, with all the liability we are potentially subject to. Generally tho, I believe I started to feel competent in considering how to calculate and make adjustments, and therefore, back them up with market data, after 2-to-3 years of full-time appraising. That said, tough, complex situations will always arise...
 

Jason Barber

Junior Member
Joined
Feb 16, 2006
Professional Status
Certified Residential Appraiser
State
Michigan
Pdexter,

Tim is correct, however paired sales analysis is just one way (although the most effective when available way) to determine market adjustments.

You can also use regression analysis to analyze market data. Another method is to simply estimate the cost new, less depreciation of the item for which an adjustment is being made. keep in mind depreciation can be extremely difficult to determine in older homes so this method is more useful in newer developments (and even then functional and external obs could be almost impossible to determine).

The ONLY way you could get comfortable making adjustments is if you were to appraise homes with same characteristics in the same neighborhood every time (and within a short period of time).

Ask yourself this... "can I defend my adjustments in a court of law?" Once you have gathered enough evidence from the market to substantiate your adjustments then you can feel "comfortable". Until then... you're just providing a wild-assed guess.
 
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