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

[DWiley]

Easy. Example: data set is really too small to drill down to accurate month over month trends, but that's the guidance proffered,

Nothing in the guidance says one has to do monthly analysis. Monthly analysis is not possible in some cases. Again, the illustration is just an example. It is NOT the minimum standard

 

[Surf Cat]

DWiley speak with fork tongue...

 

[alebrewer]

Nothing in the guidance says one has to do monthly analysis. Monthly analysis is not possible in some cases. Again, the illustration is just an example. It is NOT the minimum standard

This:
"Depending on when the contract dateof the comparable sale(s) occurred, it is possible to have positive, negative, or no adjustments applied to different comparablesales in the same appraisal report."

Combined with this:



Might lead an unsuspecting appraiser to the conclusion that F/F do, in fact, recommend month over month analysis...

 

[J Grant]

Applying a trend line to aa comp is different than adjusting each comp individually every month onth according to - god knows what..a different rate of increase or decrease for each sale- to bring them into a very tight or equal price point?

 

[alebrewer]

Applying a trend line to aa comp is different than adjusting each comp individually every month onth according to - god knows what..a different rate of increase or decrease for each sale- to bring them into a very tight or equal price point?

The problem is that unless your data set is robust enough to drill down to a credible MoverM trend analysis, then it WON'T tighten or equal the price point - it could actually increase the range. Not to mention the fact that, for most markets, getting a 'robust' data set of 'comparable' sales just doesn't happen. Even in very homogeneous (glad this isn't an appraisal) markets, there typically aren't enough comparable sales to do a MoverM analysis.

 

[Mike Ault]

Applying a trend line to aa comp is different than adjusting each comp individually every month onth according to - god knows what..a different rate of increase or decrease for each sale- to bring them into a very tight or equal price point?

Sounds like that would be Bert approved, however!

 

[J Grant]

Sounds like that would be Bert approved, however!

yeah, if we could charge $1200 an appraisal, take 2 weeks to deliver, and first graduate from a software engineering school.

 

[Sadie]

What this guidance is basically saying is that you have to support your market conditions adjustment, you know like any other adjustment. Then include that explanation in the report. Its not that hard or new, I have been doing this for over 25 years in my reports.

 

[Non Sequitur]

If the GSEs published their data this could be a smoother process. And going forward, expect another "what about..." after the market condition adjustments mandate doesn't fulfill someone's agenda.

Anyway, this whole process reminds me of an Elon Musk story. The NMFS required SpaceX to complete a study to see if Starship would hit a shark. When SpaceX asked for the information NMFS had regarding shark population, NMFS refused to release the info. So, SpaceX had to dig it up and hopefully it would match what the NMFS had. Anyway, after the study was completed NMFS then asked "What about the whales?"

 

[J Grant]

What this guidance is basically saying is that you have to support your market conditions adjustment, you know like any other adjustment. Then include that explanation in the report. Its not that hard or new, I have been doing this for over 25 years in my reports.

Yes indeed, most of us are already doing that - can always add another fancier graph - but this chart is different than what you are referencing - with respect-