So Punk, Can You Prove Your Adjustments, Go Ahead Prove Them !

[KHS445]

House on 15 acres with 40' x 80' pole barn that has 6" concrete flooring with radiant heat, complete drywall in the building, finished loft area (24' x 40') with kitchen, bathroom and bar. Below the mezzanine is "office space".

What does that book of adjustments say?

How does one "support" the adjustment for that pole barn?

My answer would be envy.

 

[Joe Flacco]

We need to improve communicating the rational for the opinion of value in appraisal reports. It is really the only advantage appraisal reports have over AVM's.

 

[Deleted member 130081]

Fun topic. Working RE Fall 2017 has an interesting article on the subject.

For all of us who categorically state organization of the industry is worthless, I would point to this as an example of how a single voice would provide a benefit.

 

[Deleted member 130081]

So, If there is no "Proof", No Adjustments are Warranted ?? (hmmm - interesting) and the UW would have essentially a great job position, as the report would meet FNMA compliance.

Actually, yes.

However, USPAP states we must do as our peers do.

 

[Deleted member 130081]

We need to improve communicating the rational for the opinion of value in appraisal reports. It is really the only advantage appraisal reports have over AVM's.

By far not the only advantage over AVM's, but I agree we should improve our reconciliation comments.

 

[Deleted member 130081]

AMC- How did you support your adjustments : Please see methods below:

The appraiser employs a market-based system of comparable property reconciliation that relies upon the results of matched pairs when available and a percentage-based system accompanied by sensitivity analysis to assure amounts that reconciled the market to the Subject property were neither greater or less than what the market called for and would support.

But it sounds good.

 

[Ahhhh Yeahhhh]

But it sounds good.

The words "matched pairs" exists... Therefore throw this trash report where it belongs... IN the trash.

 

[Joe Flacco]

Anybody that thinks paired sales analysis doesn't work does not understand paired sales analysis. It is such a basic and obvious way of developing a adjustment. I don't think a person should be licensed without understanding paired sales analysis.

 

[Michigan CG]

Not really. Paired sales is a theory that is never actually applicable as there are no true paired sales.

Sorry, you are incorrect in your whole premise. If the only difference is GLA and you bracket with differing GLAs then you have created paired sales. While true paired sales are not common they do exist.

 

[Terrel L. Shields]

nybody that thinks paired sales analysis doesn't work does not understand paired sales analysis.

Paired sales can work, can be misleading. Pairing 1 & 2 =$40/SF Pairing 2 & 3 =$70/SF. Pairing 1 & 3 = $55/SF....Which pair is right?