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

[DWiley]

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.....

If the GSEs had intended to mandate monthly analysis, then the announcements would have said that monthly analysis was required. Do no read into the announcement words that are not actually in the announcements.

The only requirement is to show the analysis that supports the market trends and the market conditions adjustments. Tools that one could use for that have existed in the marketplace for over 20 years.

 

[Dublin ohio]

If the GSEs had intended to mandate monthly analysis, then the announcements would have said that monthly analysis was required. Do no read into the announcement words that are not actually in the announcements.

The only requirement is to show the analysis that supports the market trends and the market conditions adjustments. Tools that one could use for that have existed in the marketplace for over 20 years.

Hopefully the lenders will look at it the same way, but I doubt it. I can see them citing the "example" posted but I hope I am wrong

 

[alebrewer]

Hopefully the lenders will look at it the same way, but I doubt it. I can see them citing the "example" posted but I hope I am wrong

Oh you know they will...like mandating original rental comp pics, continuing to require the 1004MC, requiring the 216, etc. Someone tells them it's required - now it's policy.

 

[Mike Ault]

Peer and model results indicate comparable three should have a 3.2% market change adjustment applied. Please reconcile differences.…

 

[Surf Cat]

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

I have a 12 month graph and trend line of both competitive sales and all the sales of the defined neighborhood within my reports. Prior to devising the charts and graphs, I scrub the data of the anomalies.

I haven't actually tried it, but if one did a different time adjustment for every sale providing the sales utilized transpired in different months, I would think that the adjusted sales would be all out of whack and not point to a clear indication of value.

The only requirement is to show the analysis that supports the market trends and the market conditions adjustments. Tools that one could use for that have existed in the marketplace for over 20 years.

That's right. But never have the examples of the requirements indicated the use of different monthly time adjustments for each individual sale before. That's what all the hoopla is about.

If F&F wants to go after appraisers whom are not doing any sort of market analysis.... the AMC's and lender should be turning them in and making them go back to school. Not lending on a flawed analysis. Fine by me.

 

[Dublin ohio]

I have a 12 month graph and trend line of both competitive sales and all the sales of the defined neighborhood within my reports. Prior to devising the charts and graphs, I scrub the data of the anomalies.

I do similar except I very seldom have enough competitive sales to produce a reliable trend. Most of the time I am lucky to have a dozen actual competitive sales in a year

 

[Fernando]

I can do price trend for competitive sales, neighborhood, district, or city and stats can be different.
I realize this and can choose my narrative and reader will believe me. Always been that case.
Best to have no time adjustments unless very significant.

 

[Mike Ault]

I've seen some crazy AVM outputs, one of which treated three-year-old refinances as sales, then applied time adjustments to them and using that mortgage amount data to estimate a current value for a subject property. And the lender was actually using them for home equity loan decisions. When you think that there is no way AVMs could operate in your market, better think again.

 

[Surf Cat]

I do similar except I very seldom have enough competitive sales to produce a reliable trend. Most of the time I am lucky to have a dozen actual competitive sales in a year

Exactly. I often use the overall trend from the entire neighborhood which smooths out the extreme ups and downs of the lack of competitive sales and explain.

We have Info Sparks in the CRMLS which is a good source to double check. Joe Flacco often posts charts from the Redfin tool.

There's no excuse not to do any sort of analysis. None.

Whomever put together that graph in the OP as an example was careless at best. Probably had the secretary doing a lap dance on him while he was devising it.....

 

[J Grant]

Rather than adjusting each sale at a different rate, which seems more about the sensitivity of an individual price, we can develop trend lines that show when the market changes ( if it changes over the course of a year), Such as prices were stable for the first six months then either declined or increased. An 8 month old sale should not be adjusted for its first six months on the market, but adjusted after the six-month mark (for example)