Why can't we band together on Feb 4th?

[Non Sequitur]

Just generated this with the following prompt:
"Generate a monthly rate of increase of 'Close Price' using 'Close Date' as the independent variable and show the monthly increase for all months."

View attachment 96133

For anyone following along, you can "visualize" by asking GPT to "visualize in a bar chart with trend line" or whatever type of visualization you want.

 

[alebrewer]

Yep - visualize gets you this:

 

[J Grant]

We did not have seasonal markets until the past few years. Plus, sometimes a slow market does not reflect what the current market is saying. We had a notoriously slow December which showed a more downward trend than usual, but listings and pending sales are trending upward this month. So, adjust all sales this month based on a unusually low last month?

Imo, one slow month does not make a market nor does one busy month. Several months of a pattern do show a market trend. ( as you know)

My conclusions: Some appraisers understand the market, and some do not. The ones who do not are always looking for a shortcut and asking other people what they should write as a comment - as if they can't even explain what they did, why they did it, or summarize their own market trend . A chart won't help because it will reflect the problem, though it might look glitzy, and the generic comment can use high-tech lingo that might sound impressive (or like gibberish that a competent reviewer could see through - a coin toss)

 

[OG80]

Ok guys (and gals),
Here you go. Working on a report. The 1004MC shows declining market (didn't weed out the comps - just used all comparables within 1/2 mile). Then, I did the comps within 20-120% of GLA and that's the Excel Chart screen capture which shows an increasing market ($76/Day).

How would you explain this?

 

[Mejappz]

Here you go. Working on a report. The 1004MC shows declining market

If I were you, I would stop using the 1004MC immediately. It has already been debunked in appraisal journals as being mathematically flawed.

 

[J Grant]

Ok guys (and gals),
Here you go. Working on a report. The 1004MC shows declining market (didn't weed out the comps - just used all comparables within 1/2 mile). Then, I did the comps within 20-120% of GLA and that's the Excel Chart screen capture which shows an increasing market ($76/Day).

How would you explain this?

If you don't "weed out the comps," it is worthless.

All sales within 1/2 mile can be garbage, sales that are not similar ot the subject. Which is not what is supposed to be included on the MC form

And houses within 20% of GLA are not comps to the subject

 

[TerryRohrer]

houses within 20% of GLA are not comps to the subject

What is the universally accepted definition of "comparable" that all appraisers, lenders, GSEs, and AMCs agree upon and rely on for every appraisal?

 

[J Grant]

What is the universally accepted definition of "comparable" that all appraisers, lenders, GSEs, and AMCs agree upon and rely on for every appraisal?

I can not speak for some universally accepted definition that they all might agree on, if such a thing is possible.

We, as appraisers, are only responsible for our own work, and if we can not figure out what are comps for our own subject ( a property a buyer would consider as a substitute), then that appraiser is not competent to perform the appraisal.

 

[TerryRohrer]

I can not speak for some universally accepted definition that they all might agree on, if such a thing is possible.

We, as appraisers, are only responsible for our own work, and if we can not figure out what are comps for our own subject ( a property a buyer would consider as a substitute), then that appraiser is not competent to perform the appraisal.

Anyone who believes the following statement is accurate in all markets doesn't understand appraisal practice.

And houses within 20% of GLA are not comps to the subject

 

[OG80]

If I were you, I would stop using the 1004MC immediately. It has already been debunked in appraisal journals as being mathematically flawed.

Ummm, how can I stop using it when the order states it should be included in the report?