Overall Market Trend (Min 12 months)

[Mejappz]

The discussions surrounding market conditions reveal AQB's failure to teach appraisers fundamental concepts. When inept organizations like GSEs dictate industry practices, this failure is underscored. This reality persists despite the arguments of TAF defenders, who may have emotional or financial motives to maintain the current chaos.

 

[Dublin ohio]

So what I think will happen is probably most appraisers will jump on the software bandwagon and will use whatever it spits out with little or no thought. But the reviewers will be happy because they include a pretty graph and a little AI generated commentary

 

[shrubberyvaluation]

So what I think will happen is probably most appraisers will jump on the software bandwagon and will use whatever it spits out with little or no thought. But the reviewers will be happy because they include a pretty graph and a little AI generated commentary

I refuse to do that, I'm just stubborn I guess. I use data of comparables. Sometimes it takes longer to search such as with split levels and such.

 

[Dublin ohio]

I refuse to do that, I'm just stubborn I guess. I use data of comparables. Sometimes it takes longer to search such as with split levels and such.

I have been using an excel type program and will continue to do so. The problem with using only "comparables" is a lack of true comparables. Hard to determine any kind of "comparable" trend when you only have 10-15 actual comparables a year.

 

[J Grant]

But are they not vetting "our" market area against "their" opinion of market area?

Doesn't matter if they are or what metrics they use -

We are responsible for our market and our analysis in our appraisal, and if we understand our market and have supported and credible reasons why we chose X or Y, we can explain any challenges they might make to our work. I have done that numerous times an never heard anything afterward, They jus wan a reasonable explanation, we can in advance try to second guess what they will do.

 

[Joe Flacco]

So what I think will happen is probably most appraisers will jump on the software bandwagon and will use whatever it spits out with little or no thought. But the reviewers will be happy because they include a pretty graph and a little AI generated commentary

That is exactly what is going to happen but I don't think anybody will be happy with the results.

 

[Mejappz]

It depends on what software you use and how you use it. I agree that if you are using something like Spark, True Footage, or Datamaster, it will be a disaster.

 

[Joe Flacco]

It depends on what software you use and how you use it. I agree that if you are using something like Spark, True Footage, or Datamaster, it will be a disaster.

Some methods are better than others but the issue is the data itself more than the processes. It is complicated.

 

[OG80]

I have been using an excel type program and will continue to do so. The problem with using only "comparables" is a lack of true comparables. Hard to determine any kind of "comparable" trend when you only have 10-15 actual comparables a year.

What excel program is that?

 

[robertwells]

A trade-off we always have. Restricting your market trend analysis to comparable properties in your market area often means not having a sufficient number of data points to derive a reliable market trend in the first place. Broaden out to the point of enough data risks calculating a trend that does not match your specific market segment. I think it's best to assess this on a case-by-case basis depending on the quality/quantity of your data. But FNMA discusses possible data sources for the market trend as Home Price Indexes, so it appears they are thinking bigger not smaller in terms of data. I find broader data (zoomed out just to the minimum extent necessary to bring in enough data) tends to work better except for specific specialized/niche segments which do not track the broader market at all.

Yes, I am trying to get my head around this as well...As far as the indexes, FHFA has a "Pacific" market, but they really want us to use such broad indexes?? I work in Contra Costa county in California...Even if I could locate San Francisco trend figures, which would be even more "local" than "Pacific", I cant imagine they think this would be accurate for my market