"How do you make market adjustments for items with contributory value? An excel spreadsheet can not come up with that formula. Mark"
Mark, I will respectfully disagree with you. I can with an excel sheet measure and study the buying behaviors of buyers in a specific market for a specific feature through time. I have been able to do it time and time again. I have been able to prove many assumptions right and others wrong.
(Only read on if you dare to hear the truth. [Anthony's climbing on his Soapbox] )
However, first, one must be able to segment the market properly to use this decorative style for adjustment.
Nothing can replace true appraisal skills. This is why as Patrick Egger points out. "Which chapter is Statistics located in the Appraisal of Real Estate?" It DOESN'T have a chapter, it is at the Back of the book as an appendix.
Why is this? Well, because, one must understand 50 years of proven technique before using statistics. Statistics mean nothing if the data-set or model is wrong. This is the biggest problem with everyone graphing these days.
With Respect, I must say we are spending more time on making the graph pretty and less time on market delineation. We cannot use any graph for adjustments if the data used is not relevant to the subjects market competition. I cannot use a quote for a Mercedes Benz transmission to figure out how much my Honda transmission will cost. Nevertheless, we are seeing it more and more.
My graphing heart cries out to all graphers and prospective graphers. Please spend more time segmenting your market for true competitive properties than you do picking which are the prettiest colors to graph. When I began this thing I call a "niche" now, I spent more time making the graph "POP" than I did segmenting my data and wow, when I woke up I have a better perspective today.
Please do not just show the graph of the Decline.
- Show a short business cycle 3-6 years,
- Give the reader perspective on where we came from
- Lead the reader along a path and point out when price left value and
- Show how it is returning or going below the Historic Value Trend.
Click here to continue reading . . .
If we do not spend more time on market delineation, we will in effect do more harm than to have never opened up excel to begin with.
I see a lot of graphs uploaded where we have under or over compensated the adjustment because we are not segmenting the market. The Prego graph (it's all in there) is fine when we just want a benchmark for the market on the theory that all ships rise and fall in the sea.
However, when we are upgrading graphs to the attempt to have bullet proof support for our adjustments we must only use OUR market segment, or it will be wrong. Furthermore, I know that myself and others on this forum could shoot holes through it.
Sorry if I am on a soapbox today, however, I feel that I have failed some of my peers by not speaking loud enough in the past on how it is more important to segment the market than the colors that you use.
Also, a graph does not work for everything. We must not force it. There is a time for them and a time for words. Just because we don't have enough data to work with, does not give us the ability to compare apples and oranges until we first bring them into parity or just explain it in a couple of lines in the report. We must let the data think with us and not for us.
Anthony Young / San Ramon, California
Certified Residential Appraiser
Email: graphthetrend@
Order your How-to Video on Spreadsheets, Charts, and Graphs today at www.graphthetrend.
Can i have more info on this ?
Regards
Posted by: girls clothing boutique | January 20, 2010 at 06:26 AM