Predominant Value

[Jim Massnick]

Originally posted by Nancy Wyatt@Aug 29 2004, 08:59 PM
You must explain why your subject is above or below the predominant. The house may be smaller/larger or remodeled or not. Just a few sentences to explain.

That is the exact reason why this happens. Because the appraisers that use canned statements dont have a clue what to put in a report if something is different than the norm.

 

[moe cohen]

Many MLS do offer this info as part of their stats. If not it can be found easily.
Moe

 

[TEL2002]

Price.............................Age
Low - $75000..................1
High - $145000................103
Pred. - $90000.................66

Appraised at - $135000 age is 2



Why does any of the above require a separate statement. I believe it is self explanatory, when you add in the comps, neighborhood description, and the rest of the report.

Predominant is a number that has the most dominate influence/most frequent - it is not the mean or center point between to extremes, nor is it an average.

 

[CANative]

Note: I do not make detailed comments on this issue in every report. However, since it's customary to reference market in terms of physcal, geographic boundaries and because market conditons are such that in order to get sufficient data in some areas I have to include areas tht contain unlike properties, it tends to give a large range between high and low - the predominant is not affected, it is what it is.

A simple, pro-active sentence in the beginning of the report goes a long way in reducing (virtually eliminating in my case) lender conditions or requests for additinal information.

Predominant is a number that has the most dominate influence/most frequent

I agree and I didn't mean to say mean. Posted too fast.

 

[Don Clark]

B) Just a note: I assume my client has little knowledge about the market. I also have to support what I put in the location grid, as well as my final opinion of value. I simply state, in the market conditions section: There are 2 active listing similar to the subject at an average of $175,310. There are 65 closed sales similar to the subject at an average of $168,191. There are 4 pending sales similar to the subject at an average of $182,500. There are no expired listings. Average days on the market is 9 days. This is what a majority of my market conditions look like as we are in a hot market, few active listings, almost none expre, and marketing time is really low. Then I also give the lower value, say $120,000 to say a high of $192,000. based on the above market conditions. I seldom have a problem with an UW but if I do, I explain why the subject is at the higher end of the range, exceeds the value of the highest sale, or is at the lower end of the range. Predominant means nothing. It is the highs and lows that make a market place. It is our job to explan that.

 

[Alisa Ottaviano]

I for one am glad to see this thread. My mentor has us use the
subject value and age as the predominate numbers and that
didn't seem right to me.

Good to see these differing points of view...!



Alisa

 

[CANative]

I did a review a few months ago where the appraiser put an odd number in the opinion of value, e.g. $235,242.

Yup, predominant value was reported as $235,242. :lol:

 

[DTB]

Don,

Is the neighborhood value looking for "similar" properties? If it is it is news to me, at least on the 1004. There are many houses in my neighborhood, many similar, many dis-similar and I include them all in the neighborhood section.

I also didn't realize that I have to explain everything that I put in MY report.

Just my 2 cents.

 

[Farm Gal]

Mean = predominate if and only if the median price and the mean are fairly similar...

If there is a wide spread between the meadian and modal prices, I take a minute or two.. which I do ANYWAY to see where the Majority of Sales are falling.

If there is an obvious preponderance of a given price or a given 'fairly tight range' which is NOT the median... then

DUH

Predominate = the modal value.

and I splain it that way.

~~~~~~~~~~~~~~~

Likewise if there is an obvious bi-modal or even TRI-modal range of values that can be picked out clearly I SPLAIN it. take a whole two sentences

~~~~~~~~~~~~~~~

You can have a perfect average, with with a median that looks fairly similar and still have a skewed array fer Pete's sake.

 

[Don Clark]

B) "Similiar" meaning in age, style(Ranch, Colonial, Tri-Level). If there are a mix I explain the mix. I do not use a ranch to compare to a 2 story colonial or a tr-level. Guess you first have to figure out the meaning of "what is is".