Negative TV Adjustment

[David S]

View attachment 82681

Why you checked the Median Comparable Sale Price Increasing? Should be Declining?

 

[Joe Flacco]

Why you checked the Median Comparable Sale Price Increasing? Should be Declining?

No. Because prices are not declining.

 

[residentialguy]

I would think a negative TV adjustment would get the LGBTQ community upset.

 

[ZZGAMAZZ]

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.

Do you always describe Market Exposure as "increasing" if, for example, the 12-month numbers are 15 days, then 18 days, than 36 days? Seems to me that even though exposure has more than doubled, the 36-day current number is still so low that I describe the trend as "stable."

 

[ZZGAMAZZ]

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

Although it might be considered as the lazy way out by peers, the Spark program populates the 1004MC, provides comments in each section of the form that can be revised by the appraiser, and also generates various corresponding charts that can be customized by each user. Of couse the overall download to the appraisal report is based upon the appraiser's MLS-based comps, competing properties, and neighborhood properties. [I am bucking for a stipend from Spark...LOL]

 

[The Bob]

Why you checked the Median Comparable Sale Price Increasing? Should be Declining?

Hopefully he has some commentary on that. If you notice there is only one sale for the most recent period. Would you base a trend on that? My market has a good deal seasonality so every fall we have what looks like declining prices, but really is just a market pulling back to normal rates of increase. In other words, year over year prices are higher. Think of someone walking up an incline with a yoyo. The path of the yoyo will track higher highs and higher lows.
As JH pointed out you can't just look at prices to determine a change in trend.

 

[John Hassler]

Do you always describe Market Exposure as "increasing" if, for example, the 12-month numbers are 15 days, then 18 days, than 36 days? Seems to me that even though exposure has more than doubled, the 36-day current number is still so low that I describe the trend as "stable."

You are best served by describing your thought process. For example, for the situation you presented you could say something like “while there has been some monthly variation in exposure time the difference is within an ordinary frequency range and, overall, is best described ‘stable’”.

It’s hard to challenge a logical well-reasoned thought process when you have the data to back it up.