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Market Conditions Analysis and Time Adjustments Dilemma

These tools produing these data rich but often inane graphs are being exposed - if appraisers use them for a quick solution to slap something impressive looking in- and those same appraisers are the ones showing up here getting tips from reviewers. I am happy the reviewers are not falling for this garbage.

A real market analysis of the comps and market area and conditions in the time frame ( the past year, typically) that is relevant to the assignment is what we are engaged to provide. We shouldn't do it just for the client, we should do it for ourselves, to get results for our appraisal.

I posted as a joke on a thread an EKG printout, and it looked very similar to a lot of the graphs here. Stop looking for a software quick solution and do the analysis of similar and competitive sales. The larger data still needs to be pared down enough to make sense in order to support the analysis and not just be a click and dump.
 
Hey j grant. Do you still drive a stick shift transmission. An automatic transmission must drive you up the wall, as they say.
 
Tom D said:
Hey j grant. Do you still drive a stick shift transmission. An automatic transmission must drive you up the wall, as they say.
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I drive an automatic, but I know how to drive a stick. I sense an analogy coming on -
 
I have said this before and I will say it again, again and again. Your appraisal report is a summarization of YOUR conclusions! You and ONLY you should be reviewing raw data and analyzing it. When you just throw in charts and graphs of raw data you are inviting the reader to make their own, usually flawed, conclusions. If I put a chart or graph in my report I make sure it helps support what I say.

My software on the 1004MC addendum now does the “regression calculations for you!” This has resulted in six figure time adjustments for comps that sold 3 weeks ago. I am not making this up! Imagine if I let that go in a report.

When you analyze raw data you are going to have anomalies. YOU analyze it and take out those anomalies. Your software won’t.
 
All those tools and software are there to help speed up your market analysis. They’re doing the same work you could do manually, just way faster. If you're getting weird or ridiculous results, it’s probably an issue with the data you’re using, not the software (with maybe a few rare exceptions).
 
weird_limbs said:
All those tools and software are there to help speed up your market analysis. They’re doing the same work you could do manually, just way faster. If you're getting weird or ridiculous results, it’s probably an issue with the data you’re using, not the software (with maybe a few rare exceptions).
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It's an issue with the formula and calculation of the line. It is the tools that is the issue. It doesn't understand or consider that the dots or sales are not all equal.
 
The data is the data and real estate data is never perfect. It assumes the dots are all identical but just at different prices. That's why when you get a few low recent dots it shows prices are declining when in reality the reason is because they are inferior properties compared to most in the set.
 
Webbed Feet said:
From my view, it took Fannie over 30 years to finally get off their rumps and put out a statement that appraisers could use to put lending clients back where they belong regarding market condition adjustments? Other than that is so ridiculous to have now just finally have done, all of this was bound to happen over and over again because, even after more than 30 years of this, there are still so many residential appraisers that have NEVER checked "Declining" or "Increasing" once in their entire careers (because then they have to do work) that the entire residential fee appraiser profession should be utterly humiliated for itself.
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That is crazy to me, unless your market has never increased or decreased, which is unlikely unless you are newer.
 
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