"Quantifiable Market-Derived Methods" for adjustments required by FNMA/USPAP

[Sadie]

You know what I've noticed. Residential appraisals for community banks when the borrower is a developer are pretty straight forward. It's stright foward when the motivation for what gets built is profit. The appraisals from the banks that do build on your lot construction are hard. It's hard when the borrowers motivation is not profit.

Doesn't matter, you should be appraising MV and not individual motivation. There is a reason F/F does not allow as a comparable a sale that was the combination of a land sale plus construction of a home.

 

[alebrewer]

Its our job to figure out typical motivation, Its in the definition of MV that we certify to.

I'd argue that it's our job to try to emulate the behavior of typically motivated participants, not to figure out what typical motivation means.

 

[alebrewer]

I do believe the goal is not 0 range adjustments, its to arrive at a supportable adjustment for a feature

We all must do what we believe best for our own analyses.

 

[alebrewer]

So, Market value as defined by F/F.

Kind of.

 

[Surf Cat]

"There is something to be said about the experience, the qualifications, the education of the appraiser, the human brain & heart, to pick the proper comparables and to do their jobs as appraisers correctly."

Above quote from this article:

Should We Real Estate Appraisers Stop Making Adjustments?

How much credit should we give ourselves when it comes to making adjustments? Making adjustments is controversial. USPAP says nothing about them.

appraisersblogs.com

 

[Non Sequitur]

"There is something to be said about the experience, the qualifications, the education of the appraiser, the human brain & heart, to pick the proper comparables and to do their jobs as appraisers correctly."

Above quote from this article:

Should We Real Estate Appraisers Stop Making Adjustments?

How much credit should we give ourselves when it comes to making adjustments? Making adjustments is controversial. USPAP says nothing about them.

appraisersblogs.com

Back in the day when Henry Harrison was blogging, he wrote something similar.

 

[Surf Cat]

Back in the day when Henry Harrison was blogging, he wrote something similar.

Analyzing has gone too far in the weeds with number crunching programs, analytics, charts and graphs, Etc. To "prove" what the "exact" number is for price per square foot, locational difference, or a pool when a simple sensitivity analysis will do.

I do believe if you don't live in cookie cutterville, driving the comps is everything. The human analysis as mentioned in the article, will never be overridden by these super duper number crunching programs.

The number crunching, pretty graphs and charts is just the trend right now.

 

[Non Sequitur]

Analyzing has gone too far in the weeds with number crunching programs, analytics, charts and graphs, Etc. To "prove" what the "exact" number is for price per square foot, locational difference, or a pool when a simple sensitivity analysis will do.

I do believe if you don't live in cookie cutterville, driving the comps is everything. The human analysis as mentioned in the article, will never be overridden by these super duper number crunching programs.

The number crunching, pretty graphs and charts is just the trend right now.

Yep, here's proof and try to make sense of this output (posted in a FB group):

 

[Mike Ault]

Yep, here's proof and try to make sense of this output (posted in a FB group):

View attachment 103314

Stable

 

[Fernando]

I don't use graphs. Will that be required in future?
I do fine without it using my appraiser intuition and creativity.