Quality of the neighborhood

[Fernando]

It was in 2019. Granite was still 50/50 and on its way out.

I'll admit....I was being cheap skate.

I remodeled kitchen in 2015. Granite was out back then.

 

[sputnam]

Man, I usually agree with 95% of what you say...I think you are wrong on this.

it is our job to know about why people do what they do. Appraisal 101.


I guess you have never used the survey method to support your comps? Or never contacted the re agent to ask what the feed back was on a comp or the subject property?

Just like when you make that condition adjustment, you have to explain why. Just making the adjustment is no longer good enough. Why.....same for the neighborhood.

Sure, you can have data showing there is a difference. But are we no different than an AVM? If we are to make adjustments, but not explain why....just use an AVM.

I wonder how well that would hold up in court. Why did you make that adjustment? Because the data said so? But why? Dunno, that's what the data said.

Why? Schools, amenities, airport, employment centers, public utilities, etc.

Sorry... I disagree. Appraisers learn methods and techniques for valuing property. At no time do we have to understand why a buyer or seller does what they do... even in aggregate. The explanations we are to make regarding adjustments aren't along the lines of '... because it's closer to the school.' They are about how we made the determination that there is a market reaction and about how we quantified that reaction. Make no mistake, most of my formal education is in Psychology. It's interesting.. it's just not part of appraising. We analyze results of the market. Others think about market motivation.

 

[Fernando]

Appraisers need to know these cultural awareness in how some buyers view characteristics and location/direction of subject.
Appraisers may not be aware of it but demand can be affected.
Some believe in the beliefs (like Americans with the number 13) and some don't.
When many in market believes in it, it will take longer to sell until a nonbeliever comes and buy it.

 

[sputnam]

Appraisers need to know these cultural awareness in how some buyers view characteristics and location/direction of subject.
Appraisers may not be aware of it but demand can be affected.
Some believe in the beliefs (like Americans with the number 13) and some don't.
When many in market believes in it, it will take longer to sell until a nonbeliever comes and buy it.

No one said motivation doesn't affect demand. I said, it's not the appraiser's job to try to understand the motivation. It's the appraiser's job to notice that a reaction occurred and then to quantify that reaction.

 

[Fernando]

No one said motivation doesn't affect demand. I said, it's not the appraiser's job to try to understand the motivation. It's the appraiser's job to notice that a reaction occurred and then to quantify that reaction.

How many times have you seen a listing and why it took longer to sell? Each with their unique circumstances which appraisers should be aware of and to consider if that comp should be given more or less weight in reconciliation. Computers can't do that.