Negative TV Adjustment

[Surf Cat]

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

Yes, that's true....however, my suggestion is that the op can start this for free if it's incorporated in their MLS. Some client's still request it as well.

There's also Trendsheet4 or Spark as alternatives. You have to pay for those though. Shoot, maybe the op is a wizard with excel and can create their own spreadsheet.

We still don't know if they mean time adjustments for market conditions Lol.

 

[wward35634]

I thought it meant a bad cable package.

LOL.

 

[wward35634]

Thank you. noted.

 

[wward35634]

Yes, that's true....however, my suggestion is that the op can start this for free if it's incorporated in their MLS. Some client's still request it as well.

There's also Trendsheet4 or Spark as alternatives. You have to pay for those though. Shoot, maybe the op is a wizard with excel and can create their own spreadsheet.

We still don't know if they mean time adjustments for market conditions Lol.

I meant Time adjustment for market conditions.
I use Spark.

 

[wward35634]

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

Agreed. Lack of data is going to be a going concern in many markets right now. Yes, seasonality is a concern, but I can get an idea by pulling 2-3 years of data.

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.

I appreciate the information, I never considered variations in the time adjustment as you mentioned. I currently use Spark for 1004mc data.

 

[wward35634]

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

I think that's called 'shutter speed' now. I meant time adjustment lol.

 

[Surf Cat]

Agreed. Lack of data is going to be a going concern in many markets right now. Yes, seasonality is a concern, but I can get an idea by pulling 2-3 years of data.

I appreciate the information, I never considered variations in the time adjustment as you mentioned. I currently use Spark for 1004mc data.

Spark (use their proprietary market analysis as opposed to 1004MC, it's quarterly) gives an analysis along with a percentage per month of the competitive sales along with an analysis of "all" the sales from the market area data that you downloaded.

It's all layed out for you....since you have this tool....I guess I don't understand what you're looking for.

 

[Terrel L. Shields]

I think that's called 'shutter speed' now. I meant time adjustment lol.

Some cameras call it TV some call it S and Pentax calls Sv "sensitivity" (ISO priority) which dictates whether shutter speed, aperture, or the ISO setting is fixed - ISO was once called ASA or DIN (German)

Lack of data is going to be a going concern in many markets

agree that sales have slowed to the point trying to determine a time adjustment becomes a problem but frankly, I think a full data set from the MLS gives you an overall market assessment of time. So I might be using 200 sales to determine a time adjustment. In NW Arkansas we are still seeing a slight increase in prices, but in NE Oklahoma the market has been flat as a fritter since the fall of 2021 if you put on a spreadsheet and run a trendline (you have seasonal trends). Also, go to the Redfin data for your county or MSA and use that. You are supporting a time value estimate. You are not proving it.

Data Center

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Go to the Data Center

 

[sputnam]

The correct answer is... You make an adjustment, any adjustment, positive or negative, when data indicates that there is a market reaction.

 

[Tom4value]

I have always been conservative with market adjustments (we don’t adjust for “time”). Market data, especially specific data, can “lie” because variables are very sensitive to change. Different things can happen to different styles, value ranges and months out of the year. You can document/calculate a, say, 1.5% per month change over a 12 month period. You apply that to a comp that sold 10 months ago and, SURPRISE, the adjusted sales price is out of whack with the other comparables. Why? Because the rate of change from months 3-6 were different from months 6-9 and so on. So that 1.5/month adjustment for the 10 month old comp may not apply to the 1.5/month adjustment to the 2 month old comp. Try justifying that in your comments! In most cases, your value is more credible by explaining your rationale for strengths and weaknesses in your reconciliation rather than saying “just look at my adjustments. They don’t lie”…..when in fact it appears that they do!