Negative TV Adjustment

[wward35634]

Hello all. Trainee about to get licensed here, 6 years in the making.
Quick question...
In general.... at what point do you determine that a negative TV adjustment is warranted based on market analysis?

I went back through a lot of old 2007ish posts on this forum, and I don't want to be that last appraiser still not seeing the writing on the wall when the time comes.

Thanks

Will

 

[Charles West]

Hello all. Trainee about to get licensed here, 6 years in the making.
Quick question...
In general.... at what point do you determine that a negative TV adjustment is warranted based on market analysis?

I went back through a lot of old 2007ish posts on this forum, and I don't want to be that last appraiser still not seeing the writing on the wall when the time comes.

Thanks

Will

What is a TV adjustment?

 

[Mike Ault]

I believe he meant "time adjustment"… But to answer the question, you don't want to miss making those. As soon as you can identify a declining price trend, it should be addressed in your appraisal. If you don't, you might have 100 appraisals floating around out there that you wish you could do over again.

 

[Charles West]

I believe he meant "time adjustment"… But to answer the question, you don't want to miss making those. As soon as you can identify a declining price trend, it should be addressed in your appraisal. If you don't, you might have 100 appraisals floating around out there that you wish you could do over again.

I thought it meant a bad cable package.

 

[John Hassler]

Assuming TV means Time Adjustment you can even note how the market is in transition before there is a measurable change. This includes noting a change in DOM, LP:SP, and in the case of a downward market the change in number of list price drops ( the delta is what’s important).

This is always great information to put into you Market Conditions section along with prevailing interest rate/terms for the property you’re appraising as it allows a defense should someone challenge your OMV under different market conditions.

 

[Joe Flacco]

Analyzing market conditions and figuring out how it applies to the appraisal is very challenging and complex. I think the best thing we can do is to just be as transparent as possible.

 

[Terrel L. Shields]

Assuming TV means Time Adjustment

Time Value - like on a camera what us older camera users called "shutter priority mode".

 

[Surf Cat]

Another thing the op has to do if this is a time adjustment thread, is analyze "when" to start applying your time adjustments.

I'm other words, your most recent sales from the last 2 months may have declined by 3% yet, if you have a sale as a comp from 9 months ago, that may not require an adjustment due to the market being stable back then. Or, it could be vice versa. Once you find out you need to explain.

Even though it's not required anymore, your MLS may have an integrated 1004MC tool where after downloading your market data, you can blow it in the tool to decipher your market analysis.

 

[Joe Flacco]

The thing about the mc form is insufficient data, seasonality, and the properties are different.

 

[Joe Flacco]