Regression for GLA Adjustment

[Fernando]

I find clients do read the narrative ( real comments, not boilerplate)

Especially on RCA's reports when he uses MARS. More effort and time for reviewer appraiser.

 

[J Grant]

https://pages.datamasterusa.com/blog/in-the-weeds/advisory-opinion-37-USPAP-technology

fascinating ! USPAP, regression , technology

 

[RCA]

What percentage of your clients would you say are actually asking for what you're doing? I ask because I've never had one client ask for these types of analyses.

Well lets say that if a medium to large lender is my client, rather than an AMC, they are more likely to ask. I really only do work for AMCs when the market is hot and they accept my higher price of maybe $700-$1600 for an SFR. And, - AMCs just want a rubber stamp that gets by automated checking. Right now I have not reapplied to the AMCs I worked 2020-2022. I still get occasional requests from a few old ones, but I know they are not going to pay $750+ for an SFR appraisal. So, I don't bother with them.

I have plenty of things to do now without taking on more appraisals. But, yes, I will do estate appraisals - maybe. Programming takes most of my time.

I really DO NOT understand why you are concerned by such a percentage. You should always assume that every appraisal could wind up in some spotlight and worst could come to worst. IMO.

Maybe what you are really after is an assessment of problems should YOU start doing more advanced appraisals. You should be worried. It is one thing to dump a MARS model into a report and another to be able to explain it in reasonable terms. You have to be careful with that. You could fall into a dangerous predicament if your appraisal gets caught up in legal proceedings whether or not it is your fault - and you really cannot explain or defend parts and pieces of your model. If you make latitude/longitude adjustments - you will have to have a good understanding of statistics and the market to answer questions as to how that could possibly work - I need to write an article on that - but haven't got around to it yet. [And how does that work? - Good question.]

 

[Carnivore]

I am not picking on you Bert or rejecting what your hawking. I see your knowledge and experience as more geared to the Aerospace Industry.

To name a few

Lycoming
Allison
GE
Textron
Sikorsky
etc

 

[RCA]

I am not picking on you Bert or rejecting what your hawking. I see your knowledge and experience as more geared to the Aerospace Industry.

To name a few

Lycoming
Allison
GE
Textron
Sikorsky
etc

I have only ever worked in one firm related to aerospace. My work is very much geared to real estate - even more than your appraisal work. I would say rather "I see your knowledge and experience as more geared to the AMCs."

Caveat - I am concerned with valuation also in a much broader context. In particular I am also concerned with equipment (including cars and industrial robots and machinery - and airplanes). In fact the valuation of anything that is at least partially measurable. But at core, my best experience derives from residential real estate - which I probably understand as well or better than anyone else for the SF Bay Area. I consider residential appraisal superior to commercial because it deals with complex emotions and subjective judgement - rather than more straightforward construction costs and income projections which are the basis of commercial appraisal.

 

[George Hatch]

Well lets say that if a medium to large lender is my client, rather than an AMC, they are more likely to ask. I really only do work for AMCs when the market is hot and they accept my higher price of maybe $700-$1600 for an SFR. And, - AMCs just want a rubber stamp that gets by automated checking. Right now I have not reapplied to the AMCs I worked 2020-2022. I still get occasional requests from a few old ones, but I know they are not going to pay $750+ for an SFR appraisal. So, I don't bother with them.

I have plenty of things to do now without taking on more appraisals. But, yes, I will do estate appraisals - maybe. Programming takes most of my time.

I really DO NOT understand why you are concerned by such a percentage. You should always assume that every appraisal could wind up in some spotlight and worst could come to worst. IMO.

Maybe what you are really after is an assessment of problems should YOU start doing more advanced appraisals. You should be worried. It is one thing to dump a MARS model into a report and another to be able to explain it in reasonable terms. You have to be careful with that. You could fall into a dangerous predicament if your appraisal gets caught up in legal proceedings whether or not it is your fault - and you really cannot explain or defend parts and pieces of your model. If you make latitude/longitude adjustments - you will have to have a good understanding of statistics and the market to answer questions as to how that could possibly work - I need to write an article on that - but haven't got around to it yet. [And how does that work? - Good question.]

I was asking you about the actual demand in the market. I've been appraising almost twice as long as you and I've never had a single such request, so that's my number - 0. If you don't want to answer the question that's fine by me. I'm not criticizing what you're doing. I think if you can sell it then that's terrific for you. I'm just questioning your assumption that appraisers are going to get dragged into court over adjustments. As opposed to telling lies about the facts of their subjects and comps.

 

[RCA]

I was asking you about the actual demand in the market. I've been appraising almost twice as long as you and I've never had a single such request, so that's my number - 0. If you don't want to answer the question that's fine by me. I'm not criticizing what you're doing. I think if you can sell it then that's terrific for you. I'm just questioning your assumption that appraisers are going to get dragged into court over adjustments. As opposed to telling lies about the facts of their subjects and comps.

I am sure you have not only been appraising twice as long - but that you have done 10 times more appraisals. For sure.

But, I would bet your appraisals look just like everyone elses, except they are very clean and pretty.

 

[George Hatch]

"Pretty" would be in the eye of the beholder. I do try to write for my readers, though.

Which circling back, is why I was asking you about what you think the market demand actually is for these types of analyses. I mean, if you're adding it because you want to and in advocacy of your own views that this is what they need then that's a perfectly good reason all by itself. If you're trying to advance the level of play for your peers that's also a good reason to do it. All good. But I wasn't asking about any of that; I was asking about your read of the market demand for such.

IN MY VIEW its the users who establish what their expectations are and what they're willing to pay for. I never had much success with "if you build it they will come".

 

[Mike Ault]

Looking back on it now after 30 years, I wish that I hadn't devoted so much time stroking my own ego by drawing elaborate interior floor plans, adding pretty charts & graphs, reciting more comparables than needed, etc. and spent that time with my family instead. You don't get that time back.

 

[Fernando]

Looking back on it now after 30 years, I wish that I hadn't devoted so much time stroking my own ego by drawing elaborate interior floor plans, adding pretty charts & graphs, reciting more comparables than needed, etc. and spent that time with my family instead. You don't get that time back.

You been hanging around with sarcastic Glenn too long and he's rubbing off you. At least you're funny.