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Weekly time adjustments

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Doug Wegener

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Senior Member
Joined
Apr 14, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
Anyone considering or making weekly time adjustments?

At what point does the monthly rate of decline become so great that this is warranted? 4%?
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I aggregrate daily and make the adjustment if it is 1.5% or more.

I determine yearly decline and divided by 366 because this is a leap year which gives me daily rate of decline, I count the number of days from the comparable date of contract to the effective date of the report, and I multiply the two results (number of days X daily % of decline) together.

If it 1.5%+ I make the adjustment.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Anyone considering or making weekly time adjustments?

At what point does the monthly rate of decline become so great that this is warranted? 4%?

If the "support" for any such adjustment is no more than a comparison between recent period (miniscule number of days, yes?) average and median housing sold prices--and, further assuming that there is a diverse range of housing--I don't know if I would want to go down that road.

That said, what's the market support for any such adjustments?
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
Why stop at weekly? :shrug:
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
I wouldn't see anything wrong with it if your data supported it but it seems like the same thing could be accomplished by opining a value at the "recent" end of the range.

If the trend is so clear and so wide for such short time increments, it would seem obvious enough.:shrug:
 

Metamorphic

Senior Member
Joined
Mar 15, 2008
Professional Status
Certified Residential Appraiser
State
California
I think weekly is probably too frequent. You'd have to have some pretty detialed back up to track the market at that level. Also, if you start playing the weekly game, you'd be obliged, just to be intellectually consistent, to base your adjustment on something more precise than the Close Date. Contract date would be better. But even then there could be a week or two of error between when the meeting of the minds occurred and when the contracting occurred.

My rule of thumb has been that unless the most recent sale is absurdly old, I take the most recent as a 0 adjustment baseline. Then I generally figure out a monthly or quarterly depreciation rate based on the last year and apply that appropriately, but usually I leave anything that's less than 30 days old alone.
 

Jim Bartley

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I've refined my method so that I can adjust on an hourly basis. Clients love it. :)
 

Doug Wegener

Thread Starter
Senior Member
Joined
Apr 14, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
Contract

I think weekly is probably too frequent. You'd have to have some pretty detialed back up to track the market at that level. Also, if you start playing the weekly game, you'd be obliged, just to be intellectually consistent, to base your adjustment on something more precise than the Close Date. Contract date would be better. But even then there could be a week or two of error between when the meeting of the minds occurred and when the contracting occurred.

My rule of thumb has been that unless the most recent sale is absurdly old, I take the most recent as a 0 adjustment baseline. Then I generally figure out a monthly or quarterly depreciation rate based on the last year and apply that appropriately, but usually I leave anything that's less than 30 days old alone.

Well market condition adjustments are supposed to be based on contract date anyway---fannie mae guidelines.
 

Dale Smalley

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I use monthy adjustments based on the annual rate. I don't think 1 week is enough for adequate marketing and exposure to get a good number of interested buyers.
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
Anyone considering or making weekly time adjustments?

At what point does the monthly rate of decline become so great that this is warranted? 4%?

How many sales in a week in any given area are there? Are there enough to determine an indicator of decline that is reliable? In most subdivisions in my area there aren't any sales from one week to the next. So, I would have to expand my search to include the neighborhood area. There still would not be consistent numbers of sales to provide reliable data. So, I would have to expand my search to include that area of town which now includes different market areas. Now I would have enough sales, probably, to determine a weekly rate of decline. However, it would not be a reliable indicator as it now includes different rates of decline from different market areas and for different reasons.

I only measure declines or increases on a quarterly period or more these days. I really think measuring on a weekly basis, although possible, is not reliable.
 
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