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Sensitivity Analysis/Bracketing
- Thread starter alebrewer
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alebrewer
Elite Member
- Joined
- Mar 11, 2008
- Professional Status
- Certified Residential Appraiser
- State
- Texas
I think you may have to dm me your email address...Can't open or download the zip file - tried both Firefox and MS Edge ...
George Hatch
Elite Member
- Joined
- Jan 15, 2002
- Professional Status
- Certified General Appraiser
- State
- California
I favor sensitivity analysis using directly comparable properties. Like any other tool it works better sometimes than others. Also helpful to bracket the subject's dominant attributes. I use it for various adjustment factors, not just sizes.
CGinMN
Senior Member
- Joined
- May 20, 2011
- Professional Status
- Certified General Appraiser
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- Minnesota
Thanks for sharing. Props to any tool that helps appraisers support their adjustments. I use Solomon Adjustment Calculator, which aids in sensitivity analysis and depreciated cost analysis. Use tools like these, insert the results directly into your reports, impress clients, reduce stips and ROVs, reduce risk, increase fees, make more money.
George Hatch
Elite Member
- Joined
- Jan 15, 2002
- Professional Status
- Certified General Appraiser
- State
- California
Inasmuch as none of the buyers and sellers even apply line item adjustments, they're not important to the principals in the market. They're certainly not important enough for you or Richard Hagar to get as excited as you do over exactly which method the appraiser uses to develop them. Etc., etc.
Fannie's primary objection is that pulling adjustments off a list or out of thin air is counterproductive. Anything is better than nothing. As far as I'm concerned, if the appraiser can explain what they're doing and how their tool works then that's sufficient.
The worst thing that happens when an appraiser uses a sub-optimal combination of adjustment factors is that they end up having to use more personal judgement to reconcile the wider-than-necessary range. Which is exactly what the buyers and sellers are doing, except they're not even getting the assist from adjustments.
Fannie's primary objection is that pulling adjustments off a list or out of thin air is counterproductive. Anything is better than nothing. As far as I'm concerned, if the appraiser can explain what they're doing and how their tool works then that's sufficient.
The worst thing that happens when an appraiser uses a sub-optimal combination of adjustment factors is that they end up having to use more personal judgement to reconcile the wider-than-necessary range. Which is exactly what the buyers and sellers are doing, except they're not even getting the assist from adjustments.
Mejappz
Elite Member
- Joined
- Dec 16, 2005
- Professional Status
- Certified Residential Appraiser
- State
- Florida
This advice is intended for those who wish to remain in blissful ignorance. Accept it and pay the consequences soon. Just ask the California appraisers who now have nothing to protect themselves against the bogus racism claims.
Mejappz
Elite Member
- Joined
- Dec 16, 2005
- Professional Status
- Certified Residential Appraiser
- State
- Florida
And no anything is not better than nothing,
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