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Weighted sales reconciliation methods

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Totally true there Highlight 17.

That's why I research by neighborhood names not proximity. If I'm pulling examples from the same market area, the a-typical nature of comparisons that may require weighting is nullified more so than cross neighborhood comparisons and the likes.

Especially in mismatching and rural type markets, or even high end, total variance grows and grows as the variance in owner value in use is more pronounced. The market is what it is, and by identifying the total variance in high/low for applicable example sets, static distributed allotted grid adjustments accommodate and substitute for any weighting needs. Sometimes a simple ranch or two story or size or similar filter can bring about that narrow market picture so you can draw up a distributed total adjustment amount. Usually I can just eyeball that from unfiltered data sets and filtered overview data set pages. I'd say that if you had only 1 comp that matches, that's your benchmark, and other comp examples would all have across the board and increased net/gross adjustments. To indicate the rest of the comps as not being over net/gross and opinioning by weighting instead just seems like another way of working towards illusionary valuation. I simply don't agree with weighting unless it's a very extreme scenario of comparison. And even if you get steep gross adjustments, as long as your net is reasonable, you've applied those adjusts correctly and picked acceptable comps. It's when your net is too excessive that you rethink your comps selection, while if it's only gross, you've merely found an example that needed some applied balance to become a decent match. I more often see a gross crawl over the % cap, than the net does. That's the benefit of distributed allotted adjustment method.
 
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You're typically working with only three of four comparable sales. Why would you need all this "weighted" blah, blah, blah?
 
You ever been fishing?:rof:
 
I can't believe this topic is still going. I "weighted" viewing it.
 
I don't see how you could have done that since an internet thread probably weighs more than you.
 
Well, that sure is a nice compliment! Skinnier than an internet thread on a diet of spicy chicken nuggets!!
 
Tim,

please don't let Total replace your common senses. Don't know why you keep arguing that point when I NEVER said it was a replacement for your opinion. Do I really need to keep saying it is your responsibility to determine when it is appropriate to use weighted percentages? If you do choose to use this weighting method and state your percentages in your report, I suggest you make sure you understand the calculation as you might get asked to demonstrate your conclusion as the OP has.

Hope this helps with your misunderstanding of how Total calculates based on the adjustments made to your comps.

http://help.alamode.com/appraiser/total/default.htm?turl=usesuggested.htm

Nothing in the attachment to your post refutes anything I stated nor does it provide any insight or understanding into how Total calculates the suggested value.
 
Just sign the report "Wintotal Software" under the appraiser and signature name because obviously that is who the appraiser really is. :)
 
Tim,

please don't let Total replace your common senses. Don't know why you keep arguing that point when I NEVER said it was a replacement for your opinion. Do I really need to keep saying it is your responsibility to determine when it is appropriate to use weighted percentages? If you do choose to use this weighting method and state your percentages in your report, I suggest you make sure you understand the calculation as you might get asked to demonstrate your conclusion as the OP has.

Hope this helps with your misunderstanding of how Total calculates based on the adjustments made to your comps.




http://help.alamode.com/appraiser/total/default.htm?turl=usesuggested.htm

Okay, so you found Total's formula of how they make the calculation, which is a simple, straight forward formula:

The property weighting formula is used to calculate the weight given to each comparable listed in the Comps PowerView. In the formula, "Y" is used to indicate a comparable number (i.e. CompY could mean Comp1, or Comp 2, or Comp 3, etc.). Here is the formula:
A = 100 x [(CompY Gross Adjustment %) / (Total Gross Adjustment %)]
B = 100 - A
C = (Total number of comps) - 1
Weight of CompY = B / C


I suppose that this formula makes some sense if the comps are very similar to each other in that all of the adjustments given to the comps are for the same items (just the amount of the adjustments differ). Otherwise it is of very little use as it is too simplistic because it does not account for the relative importance of of different property attributes (IMHO, some adjustments are simply more important than others).
 
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