Un supported adjustments

[Tom4value]

I don't put the raw data into my report for 2 reasons.
1. There is too much temptation to think, "here is the data, you figure it out", rather than taking the time to explain how you arrived at the adjustments.

2. As I have said here many times before, "people have just enough information to be dangerous". Putting raw data into reports...and doing a poor or incomplete explanation of what it means...... results in the reader making their own conclusions of what it means. If you just say, " Spark/Synapse was used to estimate the adjustments", the reader can say, "well I see the data and I say it means something different".

 

[Sadie]

If your Client is going to require that you 'show your math' ala what used to be called self contained reports.... then your fee goes up.

Perhaps remind the client that 'showing the math' was not part of the original scope of work. And while you would be happy to do that there will be an additional fee of $xx and it will be considered a new assignment

 

[Surf Cat]

"Adjustments were based on the appraiser's experience and knowledge of the local market area" just does not fly anymore.

The AMC's want the pretty charts and graphs generated by a big data dump.

Sometimes, those numbers are no better than the sensitivity analysis that the appraiser used with their "experience and knowledge of the local market area".

 

[Dublin ohio]

The AMC's want the pretty charts and graphs generated by a big data dump.

Good luck getting that "big" data dump in rural markets. Most of the time I am lucky to have one truly similar sale yet alone enough data to be considered "big" by any stretch of the imagination.

 

[Terrel L. Shields]

Again, minimize the number of adjustments you make. You do that by ignoring small adjustments, concentrate on what is really market moving, and most of all take the time to find the very best comps. That's sometimes overlooked when there are plenty of comps. Picking the closest three isn't always the best game plan. And if you don't, take a brief moment to mention those closer and why they were not picked.

 

[NC Appraising]

The NC Appraisal Board is playing wack a mole with appraisers and their or lack of adjustments.....

https://www.ncappraisalboard.org/newsletter/news.htmo

Additionally, Respondent changed
the subject’s quality rating from Q3 to Q4 based upon
the reviewer’s request, even though it was Respondent’s
opinion that the subject property should have been rated
as Q3, which shows a lack of impartiality and
independence. The adjustments that Respondent made
for gross living area (GLA) and age were applied
inconsistently and were not supported. Respondent did
not use comparable sales from within the subject
property’s subdivision and did not make appropriate
location adjustments for comparable sales that were used
from other subdivisions. Respondent did not update the
signed certification in subsequent reports.

 

[Surf Cat]

The NC Appraisal Board is playing wack a mole with appraisers and their or lack of adjustments.....

https://www.ncappraisalboard.org/newsletter/news.htmo

Additionally, Respondent changed
the subject’s quality rating from Q3 to Q4 based upon
the reviewer’s request, even though it was Respondent’s
opinion that the subject property should have been rated
as Q3, which shows a lack of impartiality and
independence. The adjustments that Respondent made
for gross living area (GLA) and age were applied
inconsistently and were not supported. Respondent did
not use comparable sales from within the subject
property’s subdivision and did not make appropriate
location adjustments for comparable sales that were used
from other subdivisions. Respondent did not update the
signed certification in subsequent reports.

So...."what happens" to said offenders? If repeat offenders, they should be eradicated like roaches.

They're probably AMC appraisers though and given more assignments....

 

[Terrel L. Shields]

The adjustments that Respondent made
for gross living area (GLA) and age were applied
inconsistently and were not supported.

Sensitivity is the easiest way to support both that I know. I make a land adjustment first- $4$ since land is not a depreciating asset. Then I run sensitivity in a two-phase process of both effective age and size. Often other than outbuildings or garage differences, these are the only adjustments I make. How long does it take me to run the spreadsheet? About 5-10 minutes at most.

The slowest analysis for me is to address any significant functional or external obsolescence. Again, careful comp choices might allow you to find comps with equal functional issues.

 

[Sadie]

So...."what happens" to said offenders? If repeat offenders, they should be eradicated like roaches.

They're probably AMC appraisers though and given more assignments....

The board does take into account previous complaints/allegations. Our committee meeting minutes are online so you can go and read them and there have been time where there is discussion about the previous allegations, etc.

 

[Salty]

I don't understand these adjustment tools. Do they set parameters properly? I once attempted to use one (can't remember which but is was regression) and its dataset included all sales regardless of location, condition, etc... Its only parameter was radius which also meant is was pulling from different states as well. Made the output not credible IMO. I suppose these tools are good for additional support, but may not actually reflect reality in the subject's immediate area. (at least when working in my market).