No Adjustments In Sales Comparison?

[residentialguy]

What is the goal of an appraisal or a review- to present results that are credible and supported. If all the comps are equivalent to the subject, weighting them equally would be credible. However, if comp 1 and 2 were equivalent to the subject, and comp 3 and 4 have substantial differences from the subject, how could one defend weighting them equally? Comp 1 and 2 would have to be given more weight/consideration in the reconciliation.

You don't know the variances. It's more than just sf adjustment. Maybe comps 1 & 2 were most similar in improvements but comps 3 & 4 were more similar in lot/view. To me, the 4 as a whole made up my opinion equally.

 

[Deleted member 77547]

Please show me that requirement. If they are all similar, he can weight them all similarly.

Ok, "can't" was probably too strong generally speaking, however I interpreted from the original post that they were not similar but yet no adjustments were made so they were simply averaged. I presume, if the range was so tight, he likely wouldn't have posted a question, but his instincts, based on what he was seeing, suggested otherwise. I was taught that it was good appraisal practice to never average and to apply weight to the comps that most closely reflect the subject. Hell, I once took a class where the instructor wore a t-shirt with "never average" on it. The MAI's I worked with taught me the same. Even if they're close, I'll weight the value.

 

[residentialguy]

Ok, "can't" was probably too strong generally speaking, however I interpreted from the original post that they were not similar but yet no adjustments were made so they were simply averaged. I presume, if the range was so tight, he likely wouldn't have posted a question, but his instincts, based on what he was seeing, suggested otherwise. I was taught that it was good appraisal practice to never average and to apply weight to the comps that most closely reflect the subject. Hell, I once took a class where the instructor wore a t-shirt with "never average" on it. The MAI's I worked with taught me the same. Even if they're close, I'll weight the value.

I never "weight" comps. I think that's a good way to get yourself into hot water. I explain why I needed the comps and the strengths and weaknesses of each which brought me to my conclusion.

 

[residentialguy]

Comps 1-6 all weigh about 150,000 lbs.

 

[leasedfee]

instincts

Instincts is a start, but you need empiricism. My instinct suspects that the thread poster's concerns are correct, but no evidence was provided to support claims otherwise. For all we know about the comps is that they're absolutely identical in every regard as the authoring appraiser on the ground claims. In which case, no adjustments and averaging is perfectly correct. "Innocent until proven guilty". If review provides evidence, now you have a fight. We see plenty of complaints about neophyte and Borderline Personality Disorder AMC reviewers asking nonsensical questions. My buddy was once distraught because the banker rejected his appraisal until he provided all new photographs taken -- because there were clouds in the sky! I kid you not. Right now we have a "He said, She said."

 

[Michigan CG]

I long long ago quit weighting (e.g., 5%, 11%, 17%,. . . ) (or e.g., 14.29%, 14.29%, etc.) the comps because those weights are purely fabricated.

I read awhile ago that a residential AMC was requiring people to assign weights to the comps. I don't weight comps as I agree with you, it is totally fabricated but this AMC was REQUIRING it. I would have told them to............ Shows the intelligence in some of the people running residential AMCs.