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The problem with Time Adjustments

I don't know what you mean by transactional adjustment, but market conditions is complex.

I mean if you put in the data and take the output at face.value, and call that transactional, then you might get results that is not reality half of the time.
 
Transactional adjustments are one of two categories of adjustments. The transactional adjustments are market conditions, concessions, atypical financing, etc. Property characteristics are the other category and are adjustments for physical differences… GLA, condition, age, quality, etc.

No adjustment can you just plug it into calculator and trust the output without understanding the mechanism. Obviously market conditions is complex, we’ve gone through those nuances many times and I agree. But there are patterns and the data doesn’t have to be perfect to form an opinion, you work with what you have. As they say all models are wrong, some are useful. Many appraisers will just exclude it as a variable all together, which is always going to be less useful than if even one piece of relevant data is analyzed.
 
Ah, in that case, I would not categorize market conditions adjustments as transactional.

I just did two townhouse appraisals, almost back to back, within a half mile of each other, and found one to be stable and the other to be declining.
 
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That happens. You see it a lot in condos where dues and assessments make all the difference.
 
That is one aspect of it, but market conditions are just soft in parts of DC in general. Sales are down 50% from 2019 and active listings are up 100% from 2019, but different areas the same. But not all the neighborhoods and price ranges are impacted the same.
 
MD and VA are doing well though. The market is super competitive for updated and renovated older homes close-in. Like the $1m-$2m range close-in. New construction has a lot of supply but it's moving.
 
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Id like to know who at the GSE's decided to get into a room and make the case that market conditions should be adjusted for in the current manner they are claiming they should be made at. In a normal business, that person would have been fired. At the gov't agencies, they were probably promoted.
 
Tom4value said:
Please don’t get me started!

Client came back and said CU gave appraisal a 5 rating. Client included the CU report that gave the “suggested” adjustments; no data, no reasoning. Client asked if I could change the adjustments to get a better rating!
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This is a business decision. But unfortunately, a cu5 worst rating appraisal is a disaster for the lender, it is not lendable because CU thinks you are doing it very wrongly. Sometimes they get another appraisal. And more unfortunately, CU is of no help. I recently got a cu2.6 which was .1% above safe harbour, a problem with the lender. I kinda made an educated guess, slightly changed 1 adjustment line, no affect on value. Bingo, came down to 2.o, whada. I deal with direct lenders where problems can be resolved by talking. I assume just like a value is really a range, and not a price point, that my adjustment are a range actually, with a price point being forced on us. I'm good, but any appraisal can be made to look bad, but you can't make a cu5 look any worse, it's already there.
Into the valley of death rode the cu5 can't change, my price point, adjustment, appraiser. Lenders having more appraisers than needed, i would cross you off the list, even being innocent. The perception of wrong can also get you into trouble. This post is more for the younger appraiser's thought.
 
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Joe Flacco said:
MD and VA are doing well though. The market is super competitive for updated and renovated older homes close-in. Like the $1m-$2m range close-in. New construction has a lot of supply but it's moving.
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Hell yeah it is. Champagne bottles popping every night in the imperial capital. :rof: All US taxpayer money funded
 
The market for dwellings has never been efficient or perfect. Unlike widgets, every property is unique. Some more than others.
 
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