Quality of the neighborhood

[shrubberyvaluation]

But what part of any of that isn't fully encapsulated in price plus property characteristics? I see no need to verify where buyers are coming from. In my market, the data on what type of countertop is in each sale is spotty, at best. Nor can conclusive determinations be made from photos. So, even if realtor and zillow marketing pieces prove that trends changed and granite is out, it is speculative to make an adjustment, or even argue it matters. How do you measure the contributory value of countertops when they are part of the whole (some argue that if you can buy it at Home Depot, and some are buying it at Home Depot, the price at Home Depot is the adjustment amount).

You can't break down every feature, not every feature will have a discernable market reaction. I don't see a discernable market reaction between solid surface/hard surface countertops. If someone has higher end countertops than your typical granite or quartz there is normally other materials or craftmanship that is of higher quality in the house. You still have to look at the market data.

 

[TerryRohrer]

You can't break down every feature, not every feature will have a discernable market reaction. I don't see a discernable market reaction between solid surface/hard surface countertops. If someone has higher end countertops than your typical granite or quartz there is normally other materials or craftmanship that is of higher quality in the house. You still have to look at the market data.

That is my point. If you don't have data, somebody's random opinion doesn't trump that. So the claim that AVMs only rely on data so can't possibly be valid is unfounded. As George indicated above, it is not about why they did what they did, it is about what they did, and what they got for what they did. Nothing about the people, just their actions in conjunction with the properties involved.

 

[shrubberyvaluation]

That is my point. If you don't have data, somebody's random opinion doesn't trump that. So the claim that AVMs only rely on data so can't possibly be valid is unfounded. As George indicated above, it is not about why they did what they did, it is about what they did, and what they got for what they did. Nothing about the people, just their actions in conjunction with the properties involved.

Right, never cared about a random opinion, and people preferring something doesn't make it automatically something they will pay for, but the market is comprised of people. Be nice if I could do what an AVM does and just say people reacted differently because of different things I won't define. When my parents got a refi and got an AVM I found it to be very un transparent. It said the properties it compared it to, their sales price, and the AVM value. No mention of how it got to that value. One sale was over half the size on the other size of a major road in another market over using sales in the subject's community that were very similar albeit settled 2 or 3 months earlier.

 

[NC Appraising]

How can "the typical buyer's reaction" be "a person?" Am I the only one who has ever been lied to? Or told someone did something that simply cannot be demonstrated? The whole anti-bias, objective and supported vs. subjective/experience is intent on relying on measurable facts rather than personal attributes. What do you say in reports? Indian buyers predominate this market? Or, Russians and Europeans prefer quartz over granite so I'm guessing $6,000 is the appropriate adjustment?

Terry, I must have not been clear on the point that I was trying to make.


I was just sharing my recent experiences on how buyers preferences can vary neighborhood to neighborhood and that I learned from speaking with borrowers on what they prefer. That's market data.

Sometimes data does not tell the entire story. That is our strength over AVMs.

For example, appraisers often say they do not adjust for bedrooms, as it is already accounted for in the GLA adjustment.

But what I learnt was that it does matter to certain buyers. AND if I can support it by data I will make an adjustment.


Many of times when I have a wide range in values and there are no clear reasons as to why, knowing my market (speaking with others) can help to explain why.


As with granite counters....never said I made an adjustment. It was my personal home that I was selling. I was just saying that I failed to analyze my market properly. If I would have, I would have went with marble or quartz. Per agent feedback.

 

[Fernando]

Some neighborhoods are predominantly favored by certain groups but we can never mention that to GSE.
It's been like that for a long time.
Computers and AVMs can't understand this.
Appraisers do see how these cultural preferences affect the market and again we can't mention it.
When we do our appraisals we analyze subject and the comps and when we see characteristics that can be favorable or unfavorable, we can understand it may affect value.
Real appraisers take all information in the market (stated or not) and determine value in reconciliation.

 

[Terrel L. Shields]

The market wanted quartz.

Of quartz, take it for granite. Gimme good old butcher block any day. But I am pretty rustic myself.

 

[Fernando]

Terry, I must have not been clear on the point that I was trying to make.


I was just sharing my recent experiences on how buyers preferences can vary neighborhood to neighborhood and that I learned from speaking with borrowers on what they prefer. That's market data.

Sometimes data does not tell the entire story. That is our strength over AVMs.

For example, appraisers often say they do not adjust for bedrooms, as it is already accounted for in the GLA adjustment.

But what I learnt was that it does matter to certain buyers. AND if I can support it by data I will make an adjustment.


Many of times when I have a wide range in values and there are no clear reasons as to why, knowing my market (speaking with others) can help to explain why.


As with granite counters....never said I made an adjustment. It was my personal home that I was selling. I was just saying that I failed to analyze my market properly. If I would have, I would have went with marble or quartz. Per agent feedback.

In terms of stone counters, granite is out. It's been out for years if you had been watching HGTV shows.
Quartz is in. I put quartz slab in my kitchen and rental bathroom.

 

[TerryRohrer]

In terms of stone counters, granite is out. It's been out for years if you had been watching HGTV shows.
Quartz is in. I put quartz slab in my kitchen and rental bathroom.

So in your reports, in support of your adjustments, do you say "Chip said" or "Joanna said"?

 

[Dublin ohio]

In terms of stone counters, granite is out. It's been out for years if you had been watching HGTV shows.
Quartz is in. I put quartz slab in my kitchen and rental bathroom.

Be careful quartz is susceptible to heat damage.

 

[Terrel L. Shields]

.never said I made an adjustment. It was my personal home that I was selling. I was just saying that I failed to analyze my market properly. If I would have, I would have went with marble or quartz. Per agent feedback.

And it only matters to women or gay cooks... and most modern women cook very little. Was listening to an older woman talking to another at a cafe and she was telling her friend that she ate out once a day, ate cereal for breakfast and sometimes for supper. Otherwise, a can of soup. That's pretty basic. As my buddy told me when house hunting, the wife finds the house and knows my one requirement- 3 vehicle garage either detached or attached. (They have 3 cars and a motorcycle)

The galley kitchen of the 80s was perfect for the unwrap and heat up crowd. It was cooking shows that created the fancy kitchen 'necessity' of the market. And the difference in quartz, "granite" (which mostly isn't granite), composite, and a host of other countertops, is fickle fashion and nothing to do with function. And we wonder why houses cost so much. Formica will last decades.