Which is better for market conditon adjustments, data master or spark?

[Terrel L. Shields]

there is no rational reason

Sometimes we don't know the issue. I remember there was an agent who lived across the street from a property that someone else had listed. But she had shown and said to me that the reason it hadn't sold was the owner (an elderly woman) had a jerk of a son who was always killing anyone interest by being a totally disagreeable person to work with. He would counteroffer someone with a price even higher than the list price because he was afraid that it was worth more. They ended up on the market 18 months and selling for about 70% of list.

 

[J Grant]

Sometimes we don't know the issue. I remember there was an agent who lived across the street from a property that someone else had listed. But she had shown and said to me that the reason it hadn't sold was the owner (an elderly woman) had a jerk of a son who was always killing anyone interest by being a totally disagreeable person to work with. He would counteroffer someone with a price even higher than the list price because he was afraid that it was worth more. They ended up on the market 18 months and selling for about 70% of list.

That would be an outlier then, in DOM and in price

But in comps, we use, not outliers, there is still a variance in price, which can not always be explained and thus would be misleading to try to adjust for. We narrow a range of value but to artistically make taht range so tight it no longer reflects the mark is misleading. It is because the parties make RE choices that are not perfect. A major property purchase is not a simple consumer product.

 

[Terrel L. Shields]

That would be an outlier then, in DOM and in price

Well, it was badly over-priced but DOM is the only clue an appraiser would have of the problem unless you accidentally talked to that agent who knew. The listing agent, OTOH, was totally non-disclosure on the issue. Great.

 

[ZZGAMAZZ]

Well, it was badly over-priced but DOM is the only clue an appraiser would have of the problem unless you accidentally talked to that agent who knew. The listing agent, OTOH, was totally non-disclosure on the issue. Great.

In my SCA Reconciliation narrative, I often cite anomolies that I can't understand for a property that the listing agent won't respond. I include the property in the grid but discount its signifigance, rather than leave it out as an outlier and then receive a ROV to explain why it wasn't included (although sometimes the SCA can describe the adress of properties that WEREN'T included in the grid, and the reason for excluding them, but only if their absence is certain to be questioned...

 

[Fnbpos]

I have tried all these market condition software tools - im not sold on any of them. The MLS has a built in chart creator that is sufficient. The 1004MC - "hated" and "despised" 1004MC is a grouped data analysis that can be useful as long as it has sufficient information. This usually requires including competitive areas outside the neighborhood - so be it. I know some appraisers who have started back with the 1004MC. One has to determine if differences in MC data periods is due to market conditions or something else. Perhaps one period had many more pools, or many more updated homes; properly scrubbing the data is key. Taking the MLS data—contract date & sale price—can produce a Monthly (or quaterly) Rolling Median price trend within an excel spreadsheet and can include a linear trendline also. A monthly rolling median sale price over at least 1 year is an ideal non-linear solution. Chat GPT (or similar) will write the code necessary for an excel spreadsheet- just tell it what you want the chart to do

I find the software too inconsistent and it often returns results that are clearly not represented by the eye test...or a simple sensitivity test.

When i see an appraisal grid with 7 individual adjustments per comp from $35,450 to $1350, even adjustments less than $500, I know the appraiser has let the computer software do all the work and complete the appraisal for them. The software companies had dollar signs in their eyes when the GSE came out with the market conditions support directive.

 

[Tom D]

Ehh, the sofeware program does all the work for an avm. At this time point of appraising, avm is above us. We are at the bottom of the totem pole.
I do like any reasonable program, more than using a piece of paper and pencil.

But i don't care anymore about this future. The walking dead yelling, now they want time trend adjustments.