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Articles by January, 2016

Movement Toward a 10 Page Mini-Narrative

by Administrator on Jan 28, 2016 Business Operation 749 Views

In my area appraisal fees have fallen over the past several years and the average number of pages in most narrative reports have correspondingly fallen. It appears to me that a dramatic shift is taking place in the appraisal business one that will change it for some time to come. It's not the kind of change that many in the business will be comfortable with. Commercial appraisal reports used to average 120 to 150 pages (or more), having said that I guess that you can tell that I have been in the business for quite a while. Appraisal reports all used to contain information on the physical, social and economic factors affecting the market area and more than a one page summary discussing subject property characteristics. Many appraisers started with a description of the state, the county and then the city in which the subject property was located. Then they went on to describe the market area including the immediate neighborhood.

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Automated Valuation Models (AVM) – Consistently Wrong Estimates

by Administrator on Jan 28, 2016 Appraisal Software 2080 Views

How many years has it been since you saw the first automated valuation model online? It’s been quite a while I can tell you and they are not without their benefits. It’s easy to look at your neighborhood and even your home online and get an idea about what is going on. The sites provide listings, pending sales and even sales information in seconds is all up there at your fingertips, but will their estimate give you an accurate sense of market value. The answer is no and even the major online sites admit that they don’t do a very good job of estimating value. Why don’t the online sites do a good job of estimating value? It simple really, real estate markets are dynamic they are constantly changing. As soon as the computer model says properties are up 1.0% and they add that to the sales they deem comparable the market has moved in the opposite direction and the AVM may be off by 20%.

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