Weighted Averages

[alex gilbert]

Steven,

Well said. The points I was trying to make were that "rote" averaging is wrong, that weighted averaging can be a useful technique in certain circumstances, and that reconciliation in each assignment requires some careful consideration, not just coming in at the mid-point. It sounds to me like we’re on the same side of this discussion.

 

[JSmith43]

Lets try and distill some commonly agreed principles. I'll throw some out there.


Proposed principles:

Averaging: A mathematical technique applied to (already adjusted) comp selling prices in order to offset small (hopefully) but plentiful errors built into the available market data.

Weighted Averaging: Another shot at adjusting comps without having to hang the adjustment on any one feature such as with gridded adjustments. Let's call it a super adjustment, or, for the poker players out there, an appraiser's wild card!

Appraisers judgement/opine/directed verdict/whatever: This is where the appraiser looks into the living breathing soul of the marketplace and circumvents any of the inconvenient numbers still standing that survived prior rounds of comp selection and feature adjustments in the grid

 

[Fred]

Alex,
One thumbs up
One, more-or-less; an average thumb

Austin,
Two thumbs up
Glad to see you are finally buying into "my" methods. :rofl:

Caterina

There are cases when, in my opinion, both of your mentors' methods are correct - just not at the same time.

:rofl:
Somthing in your comment makes me want to compare "rote" reconcilation methods to stopped watches

Kalum,
Great question. This topic has not really been banged around in here.

 

[Elliott]

90% of the time its "Greater weight was given
Sale No. 2..."

10% of the time its "The 3 comparables cluster
near the final value indication and were equally
weighted..."

Have I violated USPAP?

elliott

 

[Caterina Platt]

Originally posted by Steven Santora@Aug 18 2004, 11:50 AM

There are cases when, in my opinion, both of your mentors' methods are correct - just not at the same time.

:rofl:
Somthing in your comment makes me want to compare "rote" reconcilation methods to stopped watches

Say what?????