This is a pretty niffty detailed chart for finding time adjustments, we are done.

[Tom D]

Well. Stuff coming out to do it. But it will cost.

 

[alebrewer]

Well. Stuff coming out to do it. But it will cost.

View attachment 94681

haha - you knew it wouldn't take long...

 

[alebrewer]

Well. Stuff coming out to do it. But it will cost.

View attachment 94681

Not sure what market they modeled there, but that number of sales looks like it could be the entire Dallas/Fort Worth metroplex. Be nice if they lived in the real world.

 

[Surf Cat]

That model is embracing the different percentage, every up and down per month method. No smoothing out.....ugh

Sometimes I have a dated sale in a report that is an important indicator of value. Like 18 months back. I'll take the median sales of competitive sales back then, to the current effective date and make a lump sum % time adjustment if warranted. I don't calculate all the ups and downs from 18 months back to the current date. It's a straight shot.

The other sales if let's say, they're spread out in 6 months.... I smooth out. The most recent sales will have no time adjustments and the sales closer to 6 months, if warranted, will have a time adjustment.

I'm not digging on the need for hypocritical exactness one day by wanting time adjustments each and every month and ANSI measurements to waivers and PDC's the next day.

If y'all haven't listened to the Voice of the Appraiser episode that Terrel just posted on the effect of a waiver and what it does to prices in a neighborhood, it's a good listen.

 

[J Grant]

That model is embracing the different percentage, every up and down per month method. No smoothing out.....ugh

Sometimes I have a dated sale in a report that is an important indicator of value. Like 18 months back. I'll take the median sales of competitive sales back then, to the current effective date and make a lump sum % time adjustment if warranted. I don't calculate all the ups and downs from 18 months back to the current date. It's a straight shot.

The other sales if let's say, they're spread out in 6 months.... I smooth out. The most recent sales will have no time adjustments and the sales closer to 6 months, if warranted, will have a time adjustment.

I'm not digging on the need for hypocritical exactness one day by wanting time adjustments each and every month and ANSI measurements to waivers and PDC's the next day.

If y'all haven't listened to the Voice of the Appraiser episode that Terrel just posted on the effect of a waiver and what it does to prices in a neighborhood, it's a good listen.

No official word from Fannie that this is a requirement. Imo a neighborhood trend line is what they want, but then they post an example based on this, which is insane -every sale tracking at a different amount. it becomes about price smoothing, not how a trend is truly influencing a market.

Appraisal volume is down, but the managers at the entities want to keep their jobs, so they come up with ever more demands about precision - for the smaller and smaller amount of appraisals that will be performed.

 

[J Grant]

Well. Stuff coming out to do it. But it will cost.

View attachment 94681

Great, so cloudy dots that look like a weather repot done by a fuzzy logic nobody understands is adjusting different sales at different rates. Who decides what data to input on these and how much data is needed.? More than the fewer relevant comps starts skewing values. But hey, it came from a software program and it took a minute!.

 

[DWiley]

I'm not digging on the need for hypocritical exactness one day by wanting time adjustments each and every month and ANSI measurements to waivers and PDC's the next day.

Nothing in the announcements mandates monthly adjustments. As stated before, the illustration is just an example of what might be done (if one had sufficient data for that level of analysis)

 

[Dublin ohio]

Be nice if they lived in the real world.

Just finished one in a rural/suburban type neighborhood. Only had 3 actual similar sales in a 100 sq mile neighborhood. A total of 198 SFR sales in the neighborhood within the past year. Even doing the macro there would be no way I could come up with a monthly trend that would be credible

 

[Surf Cat]

Nothing in the announcements mandates monthly adjustments. As stated before, the illustration is just an example of what might be done (if one had sufficient data for that level of analysis)

Based on the graph in the OP and Tom D's post #201 showing a new tool which cites being compliant with F&F "guidelines", it appears that's exactly what they're implying..... different monthly adjustments.....

 

[Dublin ohio]

Based on the graph in the OP and Tom D's post #201 showing a new tool which cites being compliant with F&F "guidelines", it appears that's exactly what they're implying..... different monthly adjustments.....

Regardless of whether it is monthly, quarterly or whatever. It is obvious from the example that they want trends applied period per period.